Exhibit 7-5 Workers and Output Data -In Exhibit 7-5, Diminishing Returns Set in When the ____

question 2

Multiple Choice

Exhibit 7-5 Workers and output data $$\begin{array} { | c | c | } \hline \text { Laborers } & \begin{array} { c } \text { Total } \\\text { Product }\end{array} \\\hline 0 & 0 \\1 & 8 \\2 & 20 \\3 & 25 \\4 & 28 \\5 & 29 \\\hline\end{array}$$
-In Exhibit 7-5, diminishing returns set in when the ____ worker is hired.

• A) first
• B) second
• C) third
• D) fourth
• E) fifth

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Definitions:

Employer Cost

The total expense incurred by employers to compensate employees, including salaries, benefits, and taxes.

Interest Expense

The cost incurred by an entity for borrowing funds.

Contingent Liability

A potential obligation that may arise depending on the outcome of a future event, which is not yet certain to occur.

Advance Payments

Payments made by a buyer earlier than the agreed upon payment schedule, often to secure an order or as a deposit.