Question

When each additional worker hired contributes less than the previous worker hired to total output, we can say there are (is):_______

a. falling average productivity
b. diminishing marginal utility
c. diminishing average returns
d. diminishing marginal returns

Answer 1

d. diminishing marginal returns

Step-by-step explanation:

The diminishing marginal returns refer to a reduction in the marginal output where the value of the single factor would be rises keeping all other production factors the same or constant

Since in the question it is mentioned that for each extra worker hired that contributes would be lesser than the earlier worker hired

So this represents the diminishing marginal returns

hence, the option d is correct