The law of diminishing marginal returns is first evident in the following table
A)when the first worker begins
B)with each of the workers
C)when the third unit of labor is added
D)with the last unit of labor input
E)when the fourth unit of labor is added

Question

The law of diminishing marginal returns is first evident in the following table 
A)when the first worker begins 
B)with each of the workers 
C)when the third unit of labor is added 
D)with the last unit of labor input 
E)when the fourth unit of labor is added

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input (in this case, labor) are added to a fixed input (such as capital and land), the marginal product of the variable input eventually decreases. This means that the additional output generated by each additional unit of labor will decrease beyond a certain point. In the table provided, we can see that the marginal product of labor decreases after the third unit of labor is added. Therefore, the correct answer is C, when the third unit of labor is added.

The Law of Diminishing Marginal Returns Is First Evident in the Following