Question

Bookmarks People Tab Window Help + s of Microecox The marginal product of the foux Solved: a) Fill in the marginal ou X =g.edu/d2/ima/quizzing/user/attempt/quiz_start_frame_auto_d21Pou-2054461&isprv=&drc=0&qi=3091973&cfql=0&dn=0 m 00 Time Left:0:49:21 Caroline Davis: Attempt 1 Question 3 (2.5 points) ✓ Saved Based on the table below, for which worker does diminishing marginal returns begin to set in? 8 Worker Output 4 300 5 450 6 650 7 830 8 930 13 4 5 6 7 8 ✓ Saved Question 4 (2.5 points) docx dity C MacBook Pro Du VO 000 F 80 FC FS & < $ % 6 0 8 6 7 9

Answer 1

Worker	Output	Marginal product(TP​2 - TP​1​)
4	300	-
5	450	150
6	650	200
7	830	180
8	930	100

As we know, first stage of production process has increasing marginal returns where per unit increase in factors of production increases the output at an increasing rate. In the second stage, per unit increase in the factors of production increases the output at decreasing rate which is known as diminishing marginal returns.

Here till 6 workers, there is increasing marginal returns as marginal product increases, after hiring of 7th worker, marginal product falls so, this is the beginning of the phase of diminishing marginal returns.

Therefore, 7th worker marks the beginning of the diminishing marginal returns.