Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1

-Refer to Table 16.1. When moving from Period 1 to Period 4, the marginal return to labor
A) increases.
B) decreases.
C) does not change.
D) first increases, then decreases.

Question

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1
 
-Refer to Table 16.1. When moving from Period 1 to Period 4, the marginal return to labor
A) increases. 
B) decreases. 
C) does not change. 
D) first increases, then decreases.

Quizplus · Accepted Answer

As the table shows, the marginal return to labor decreases from Period 1 to Period 4. This means that, as more labor is added, the additional output produced decreases. Therefore, the best choice is B, which indicates that the marginal return to labor decreases.

Refer to the Information Provided in Table 16