Table 21.1 $$\begin{array} { | c | r | }
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}$$ With which unit of labor do diminishing marginal returns first appear in Table 21.1?
A)The first.
B)The second.
C)The third.
D)The fourth.

Question

Table 21.1 $$\begin{array} { | c | r | } 
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}$$ With which unit of labor do diminishing marginal returns first appear in Table 21.1?
A)The first.
B)The second.
C)The third.
D)The fourth.

Quizplus · Accepted Answer

Diminishing marginal returns first appear with the third unit of labor, as the increase in output from the second to the third unit (10 units) is less than the increase from the first to the second unit (20 units).

Table 211 With Which Unit of Labor Do Diminishing Marginal Returns First