Refer to Scenario 7.8 below to answer the question(s) that follow.
SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively.
-Refer to Scenario 7.8. Diminishing returns to labor set in with the ________ worker.
A) first
B) second
C) third
D) fourth

Question

Quizplus · Accepted Answer

Diminishing returns to labor occur when adding an additional unit of labor (in this case, a worker) results in a smaller increase in output than the previous unit of labor added. From the scenario, the increase in pools cleaned goes from 7 (12-5) with the second worker to 5 (17-12) with the third worker, indicating diminishing returns start with the third worker.