Asked by Gracia Malohing on Jun 23, 2024
Verified
Refer to Table 10.3. Diminishing returns to labor start with the ________ worker.
A) second
B) third
C) fourth
D) fifth
Diminishing Returns
A principle stating that as investment in a single area of production increases, the rate of return from that investment, after a certain point, begins to decrease.
Worker
A person engaged in work, especially in manual or industrial labor, often for wages.
- Examine the connection between diminishing returns and the effect it has on the marginal productivity of labor and decisions regarding recruitment.
Verified Answer
AK
Alaiin KanyiindaJun 29, 2024
Final Answer :
C
Explanation :
Diminishing returns to labor occur when adding an additional worker results in a smaller increase in output than the previous worker added. Without the specific data from Table 10.3, the general concept dictates that the correct answer is identified when the marginal product of labor begins to decrease, which typically happens after several workers have been added. Given the options, the choice indicating the fourth worker suggests the point at which adding more workers leads to a decrease in the marginal product of each additional worker, aligning with the concept of diminishing returns.
Learning Objectives
- Examine the connection between diminishing returns and the effect it has on the marginal productivity of labor and decisions regarding recruitment.
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