Question

"Diminishing marginal​ returns" refer to a situation in which the ______.A. average product of the last worker hired is less than the average product of the previous worker hired.B. marginal cost of the last worker hired is less than the marginal cost of the previous worker hired.C. marginal product of the last worker hired is less than the marginal product of the previous worker hired.D. average cost of the last worker hired is less than the average cost of the previous worker hired.

Answer 1

Answer: C. marginal product of the last worker hired is less than the marginal product of the previous worker hired

This statement is correct because marginal product refers to the increase in the production, when 1 worker is added to the production process. Diminishing marginal returns set in when adding one extra worker increases the production less than the previous worker did.

Explanation: