Table 1 shows the relationship between the number of workers employed by a manufacturing firm and its total daily output of a product. The quantities of all other inputs remain constant.
Table 1
| Number of workers | Total output |
|---|---|
| 1 | 15 |
| 2 | 35 |
| 3 | 60 |
| 4 | 80 |
| 5 | 95 |
| 6 | 105 |
| 7 | 105 |
For this firm, diminishing marginal returns to labour set in when the
3rd worker is employed.
4th worker is employed.
5th worker is employed.
6th worker is employed.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.