$$\begin{array}{l}
\begin{array} { | c | c | }
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}\
\text { Table 21.1 }
\end{array}$$ With which unit of labor do diminishing marginal returns first appear in Table 21.1?
A) The first.
B) The second.
C) The third.
D) The fourth.

Question

$$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}\
\text { Table 21.1 }
\end{array}$$ With which unit of labor do diminishing marginal returns first appear in Table 21.1?
A) The first.
B) The second.
C) The third.
D) The fourth.

Quizplus · Accepted Answer

Diminishing marginal returns first appear with the third unit of labor. As we move from 2 to 3 units of labor, the marginal product of labor declines from 30 to 25.

With Which Unit of Labor Do Diminishing Marginal Returns First