Exhibit 21-8

-Exhibit 21-8 shows how output varies with the only variable input used in its production. The table indicates that diminishing marginal returns set in with the hiring of which unit of labor?
A)first
B)second
C)third
D)fourth
E)fifth

Question

Exhibit 21-8
​
 
-Exhibit 21-8 shows how output varies with the only variable input used in its production. The table indicates that diminishing marginal returns set in with the hiring of which unit of labor?
A)first 
B)second 
C)third 
D)fourth 
E)fifth

Quizplus · Accepted Answer

Diminishing marginal returns occur when each additional unit of input contributes less to output than the previous unit. This typically starts after the point where the marginal product of labor begins to decrease.

Exhibit 21-8 ​

Exhibit 21-8