The question entails two manager discussing whether to hire a new employee or laborer. They are arguing over whether or not to hire a new employee...

The question entails two manager discussing whether to hire a new employee or laborer. They are arguing over whether or not to hire a new employee because of diminishing returns. Should they hire a new worker because of the new worker causing diminishing returns on production?

No, the mangers should not hire a new employee if he causes diminishing returns on productionas the costs of increased production along with the cost or wages of hiring a new employee arehigher...