Refer to the following:
Amount of total output produced from various combinations of labor and capital.

$\begin{array}{cccc}
&\text { Units of Capital }\
&& 1 & 2 & 3 \
\hline &1 & 80 & 100 & 120 \
\text {Units }&2 & 180 & 220 & 260 \
\text {of }&3 & 270 & 330 & 390 \
\text {Labor }&4 & 340 & 420 & 500 \
&5 & 390 & 490 & 590 \
&6 & 410 & 530 & 650
\end{array}$
-If capital is fixed at one unit, diminishing returns begin with the
A) first unit of labor.
B) second unit of labor.
C) third unit of labor.
D) fourth unit of labor.
E) none of the above

Question

Refer to the following:
Amount of total output produced from various combinations of labor and capital.

$\begin{array}{cccc} 
&\text { Units of Capital }\
&& 1 & 2 & 3 \
\hline  &1 & 80 & 100 & 120 \
\text {Units }&2 & 180 & 220 & 260 \
\text {of }&3 & 270 & 330 & 390 \
\text {Labor }&4 & 340 & 420 & 500 \
&5 & 390 & 490 & 590 \
&6 & 410 & 530 & 650
\end{array}$
-If capital is fixed at one unit, diminishing returns begin with the
A) first unit of labor.
B) second unit of labor.
C) third unit of labor.
D) fourth unit of labor.
E) none of the above

Quizplus · Accepted Answer

Diminishing returns begin when each additional unit of labor adds less to the total output than the previous unit. From 1 to 2 units of labor, output increases by 100 (180-80), from 2 to 3 units by 90 (270-180), indicating diminishing returns start with the third unit of labor.

Refer to the Following: Amount of Total Output Produced from Various

Refer to the Following:
Amount of Total Output Produced from Various