Question

When do diminishing returns begin to occur with the hiring of the _______.

1) first employee
2) second employee
3) third employee
4) fourth employee

Answer 1

Diminishing returns begin to occur with the hiring of the second employee.2) second employee

Step-by-step explanation:

In economics, diminishing returns refer to the point at which the addition of more workers starts to result in smaller increases in production output. This occurs because as more workers are hired, the fixed capital (such as machinery or equipment) becomes insufficient to support their work efficiently.

In the case of hiring additional employees, the question is about when diminishing returns begin to occur. According to the provided information, the company experiences diminishing returns after the second employee.

For example, if a typing process optimally requires one worker and one PC, adding more than one typist can lead to diminishing marginal productivity. The second worker may be necessary to handle tasks like answering phones, but beyond that point, adding more workers will result in smaller and smaller increases in output.