Which of the following illustrates diminishing marginal returns? A. Total cost decreases as the quantity of labor hired increases. B. Hiring more workers decreases the productivity of each additional worker. C. Debra produces 30 hats per hour. D. A company makes greater investments as it earns higher profits.

B. Hiring more workers decreases the productivity of each additional worker.

Explanation:

The law of diminishing marginal returns states that the marginal utility on the consumption of an additional unit of an item will continue to increase to a point where marginal or additional utility begins to reduce.

As such, hiring more workers that results in a decrease in the productivity of each additional worker typifies diminishing marginal utility or returns.

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