The production function for good X in the above table exhibits increasing marginal returns to capital over what output range?
A)Between 0 and 1,524.
B)Between 0 and 2,991.
C)Between 2,391 and 3,048.
D)Between 3,016 and 2,945.

Question

Quizplus · Accepted Answer

Increasing marginal returns to capital occur when each additional unit of capital results in a larger increase in output. The range between 0 and 1,524 indicates this behavior.

The Production Function for Good X in the Above Table