Question

Which situation will likely give rise to diminishing marginal product of labor?

	Hell's Kitchen, which has enough counter space for three cooks per shift, decides to hire a fourth cook per shift.
	A landscaping firm replaces all of its self-propelled lawnmowers with push mowers.
	Nevaeh's Kitchen undertakes a massive expansion, doubling both the size of its kitchen and number of cooks.
	Plasma television manufacturers are going out of business because of increased competition from LCD televisions.

Answer 1

option 1

Hell's Kitchen, which has enough counter space for three cooks per shift, decides to hire a fourth cook per shift

Diminishing returns start when the fixed input is not enough to produce an optimum level of the variable inputs, here the cooks are going to be 4 and the kitchen space is for 3 so the marginal product of the labor decreases which means the diminishing return gets into effects.

in the next two options, both the inputs are variable so the marginal product does not change and the last option is not related to the diminishing returns.

\