Answer the question on the basis of the following output data for a firm.Assume that the amounts of all nonlabor resources are fixed. $001402903126415051656180\begin{array}{l}\begin{array} { c c c } \text { Number of}&&\text{ Units of }\\\text { Workers } & & \text { Output } \\\hline0 & & 0 \\1 & & 40 \\2 & & 90 \\3 & & 126 \\4 & & 150 \\5 & & 165 \\6 & & 180\end{array}\end{array}$ Refer to the data.Diminishing marginal returns become evident with the addition of the:

A) sixth worker.
B) fourth worker.
C) third worker.
D) second worker.

Question

Answer the question on the basis of the following output data for a firm.Assume that the amounts of all nonlabor resources are fixed.

001402903126415051656180\begin{array}{l}\begin{array} { c c c } \text { Number of}&&\text{ Units of }\\\text { Workers } & & \text { Output } \\\hline0 & & 0 \\1 & & 40 \\2 & & 90 \\3 & & 126 \\4 & & 150 \\5 & & 165 \\6 & & 180\end{array}\end{array}

Refer to the data.Diminishing marginal returns become evident with the addition of the:

A) sixth worker.
B) fourth worker.
C) third worker.
D) second worker.

Avery Barker · Accepted Answer

Final Answer : C, Explanation :  Diminishing marginal returns occur when the addition of a worker results in a smaller increase in output than the previous worker. The marginal product of the third worker is 36 (126-90), which is less than the marginal product of the second worker, 50 (90-40), indicating diminishing returns start with the third worker.

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