Suppose You Run a Pizza Shop and Currently Have Two

question 3

Multiple Choice

Suppose you run a pizza shop and currently have two employees.If you hire a third employee,your output of pizzas per day rises from 55 to 65.If you hire a fourth employee,output rises to 80 per day.A fifth and sixth employee would cause output to rise to 90 and 95 per day,respectively.Pick the correct statement:

• A)Diminishing returns set in with the hiring of the fourth worker.
• B)Diminishing returns set in with the hiring of the fifth worker.
• C)Diminishing returns set in with the hiring of the sixth worker.
• D)Diminishing returns set have not yet set in because output is still increasing.

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Definitions:

"If...Then..."

A logical statement or conditional expression indicating that if one thing happens, then another will follow.

Planning Tool

A digital or analog resource used to outline, organize, and structure future activities or strategies.

Single Factor

Single factor refers to an isolated variable that is considered or analyzed in a study, experiment, or assessment to understand its impact or significance in a given context.

Scenario Analysis

A method used to analyze and assess possible future events by considering alternative possible outcomes or scenarios.