Which of the following statements by a restaurant owner refers to the law of diminishing returns?
A)"The higher the quality of the ingredients we use,the higher the cost of producing each meal."
B)"If we double the size of our premises and double everything else - kitchen staff,serving staff,equipment - we can increase the number of meals we serve,but not to double the current levels."
C)"We can increase the number of meals we serve by just adding more kitchen staff,but each additional worker adds less meals than the previous worker because traffic in the kitchen will get worse."
D)"We can serve the same number of meals with fewer kitchen staff,but we would have to buy more labour-saving kitchen equipment."
E)"We can serve the same number of meals with less kitchen equipment,but we would have to hire more kitchen staff."

Question

Quizplus · Accepted Answer

The law of diminishing returns refers to the point at which the addition of an input (such as labor, equipment, or ingredients) results in a decreasing marginal output (or decreasing returns). Statement C refers to this concept as each additional kitchen staff adds less meals than the previous worker due to the worsening kitchen traffic.

Which of the Following Statements by a Restaurant Owner Refers