Arrange the steps in understanding diminishing marginal returns in a production context.

Diminishing marginal returns is a concept in production that describes how adding more of one resource, like labor, leads to smaller increases in output after a certain point. Initially, when you add workers to a factory, production increases significantly because tasks can be divided among more people. However, as you keep adding more workers, each new worker contributes less to the total output because they might run out of equipment or space to work efficiently. For example, if a factory can only fit ten machines, adding more than ten workers may lead to crowding, causing delays and reducing productivity. This shows that while resources can boost production, there is a limit to their effectiveness, and understanding this helps businesses make better decisions about resource allocation.