Question

Assume that one laborer produces 6 units of output, two laborers produce 14 units, three laborers 22 units, four laborers 24 units, and five laborers 25 units. Diminishing returns set in when the firm hires:

Answer 1

Answer:

Diminishing returns set in when the firm hires four laborer

Explanation:

given data

one laborer produces =  6 unit

two laborer produces = 14 unit

three laborer produces = 22 unit

four laborer produces = 24 unit

five laborer produces = 25 unit

solution

we know that in the Diminishing returns it is refer to that fact when once it hit an certain point than each of the additional units give it less and the less returns for money

so here when one laborer 6 unit produce so when two it is more 8 more and when three than 8 but when four labor than it is 2 more production only  

so here Diminishing returns set in when the firm hires four laborer