In the context of diminishing marginal returns, which of the following scenarios demonstrates the effect on output when additional units of a single input factor are added while holding other inputs constant?

Diminishing marginal returns happen when adding more of one input, like labor, while keeping other inputs, such as machinery, the same leads to smaller increases in output. For example, imagine a small bakery with one oven. If the baker hires more workers, at first, the output of baked goods increases significantly because there are more hands to help. However, after a certain point, adding more workers means they have to wait for the oven to be free, so each new worker contributes less to the overall production. This shows that while more workers can help, there comes a time when they don't add as much to the output as before, illustrating the concept of diminishing marginal returns.