-In the above table, between which two levels of output does one first observe the law of diminishing marginal returns?
A) 1,000 and 3,000
B) 4,000 and 4,500
C) 3,000 and 4,000
D) 0 and 1,000

Question

-In the above table, between which two levels of output does one first observe the law of diminishing marginal returns?
A) 1,000 and 3,000 
B) 4,000 and 4,500 
C) 3,000 and 4,000 
D) 0 and 1,000

Quizplus · Accepted Answer

The law of diminishing marginal returns is observed when the marginal product of an input decreases as the quantity of the input increases. This typically occurs after a certain level of output. In this case, it is first observed between 3,000 and 4,000 units of output.

-In the Above Table, Between Which Two Levels of Output