(Table: Bonnie's Production Function for Good Z) Look at the table Bonnie's Production Function for good Z.Diminishing returns to labor occurs when Bonnie hires the worker.
A)second
B)third
C)fourth
D)fifth

Question

Quizplus · Accepted Answer

Diminishing returns to labor occur when Bonnie hires the fourth worker. As the number of workers increases from three to four, the marginal product of labor declines from 10 to 6, indicating that each additional worker is becoming less productive than the previous one. Therefore, hiring the fourth worker is not the best choice as it results in diminishing returns to labor.

(Table: Bonnie's Production Function for Good Z) Look at the Table