Let L represent the quantity of labor, and let Q represent the quantity of output. Suppose a certain production function includes the points (L = 7, Q = 27), (L = 8, Q = 35), and
(L = 9, Q = 45). Based on these three points, this production function exhibits diminishing marginal product.

Question

Quizplus · Accepted Answer

The marginal product of labor increases as labor increases from 7 to 8 (an increase of 8 units of output) and from 8 to 9 (an increase of 10 units of output), indicating increasing marginal product, not diminishing.

Let L Represent the Quantity of Labor, and Let Q