FIGURE 7-1

-Refer to Figure 7-1. When does marginal product begin to diminish?
A) with the first worker hired
B) with the second worker hired
C) with the third worker hired
D) with the fourth worker hired

Question

FIGURE 7-1
 
-Refer to Figure 7-1. When does marginal product begin to diminish?
A) with the first worker hired 
B) with the second worker hired 
C) with the third worker hired 
D) with the fourth worker hired

Quizplus · Accepted Answer

Marginal product begins to diminish with the third worker hired as this is where the curve starts to flatten out and increase at a decreasing rate. Beyond this point, adding more workers will result in a decreasing marginal product.

FIGURE 7-1 -Refer to Figure 7-1. When Does Marginal Product Begin to Marginal