Arrange the following steps demonstrating the concept of diminishing marginal returns in labor supply from first to last: A) Hiring a fourth worker leads to a smaller increase in output compared to the third worker, B) The first worker significantly increases production, C) The second and third workers continue to add output at a decreasing rate, D) The production process experiences limited resources that become constrained.

To understand diminishing marginal returns in labor supply, we start with the first worker, who significantly boosts production because they are the only one working. As we add the second and third workers, they continue to increase output, but each new worker contributes less than the one before them, showing that the increase is happening at a decreasing rate. Eventually, when we hire a fourth worker, we notice that their addition leads to an even smaller increase in output compared to the third worker. This occurs because the production process is limited by resources, which become constrained as more workers are added. In this way, we see that while adding workers can increase production, the benefits diminish with each additional worker.