Table 5.1
-Refer to Table 5.1, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the
A) third worker.
B) fourth worker.
C) fifth worker.
D) sixth worker.

Question

Table 5.1
-Refer to Table 5.1, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the
A) third worker. 
B) fourth worker. 
C) fifth worker. 
D) sixth worker.

Quizplus · Accepted Answer

Diminishing marginal returns occur when adding an additional factor of production results in a lower marginal per unit output. Without the specific table data, the general principle is that if the addition of the third worker leads to a smaller increase in output compared to the second worker, diminishing returns have begun with the third worker.

Table 5.1 -Refer to Table 5.1, Which Gives a Firm's Production Function