Use the figure below to answer the following questions.

Figure 11.4.1
-Refer to Figure 11.4.1, which illustrates the total product curves for four different plant sizes. One of the fundamental technological facts reflected in the shape of each of the total product curves is the
A)price of the inputs.
B)price of the output.
C)law of diminishing marginal returns.
D)law of economies of scale.
E)fact that capital and labour cannot be substituted for each other.

Question

Use the figure below to answer the following questions.
  
Figure 11.4.1
-Refer to Figure 11.4.1, which illustrates the total product curves for four different plant sizes. One of the fundamental technological facts reflected in the shape of each of the total product curves is the
A)price of the inputs. 
B)price of the output. 
C)law of diminishing marginal returns. 
D)law of economies of scale. 
E)fact that capital and labour cannot be substituted for each other.

Quizplus · Accepted Answer

The shape of the total product curves reflects the law of diminishing marginal returns, as each additional unit of input results in smaller increases in output. None of the other choices are reflected in the shape of the curves.

Use the Figure Below to Answer the Following Questions