Table 7.5

$$\begin{array} { | c | c | c | }
\hline \text { Labor } & \text { Total Froduct } & \text { Marginal Product } \
\hline 1 & 2 & 2 \
\hline 2 & 6 & \mathrm {~A} \
\hline 3 & \mathrm {~B} & 6 \
\hline 4 & 16 & 4 \
\hline 5 & 18 & \mathrm { C } \
\hline 6 & \mathrm { D } & 0 \
\hline
\end{array}$$
-Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.At which point do diminishing marginal returns set in?
A)before the first unit of labor
B)between the first and second units of labor
C)between the second and third units of labor
D)between the third and fourth units of labor
E)between the fourth and fifth units of labor

Question

Table 7.5
​
 $$\begin{array} { | c | c | c | } 
\hline \text { Labor } & \text { Total Froduct } & \text { Marginal Product } \
\hline 1 & 2 & 2 \
\hline 2 & 6 & \mathrm {~A} \
\hline 3 & \mathrm {~B} & 6 \
\hline 4 & 16 & 4 \
\hline 5 & 18 & \mathrm { C } \
\hline 6 & \mathrm { D } & 0 \
\hline
\end{array}$$
-Refer to Table 7.5,which shows labor,total product,and marginal product produced by a firm.At which point do diminishing marginal returns set in?
A)before the first unit of labor
B)between the first and second units of labor
C)between the second and third units of labor
D)between the third and fourth units of labor
E)between the fourth and fifth units of labor

Quizplus · Accepted Answer

Diminishing marginal returns set in when the marginal product of labor decreases with the addition of another unit of labor. In this table, the marginal product of labor decreases from 2 to "A," indicating that diminishing returns set in between the first and second units of labor. However, we need to choose the best answer, given that "A" is unknown. Looking at the rest of the table, the marginal product of labor decreases again between the third and fourth units of labor from 6 to 4. Therefore, the best choice is D.

Table 75 ​ -Refer to Table 7

Table 75
-Refer to Table 7