Exhibit 21-10

-Refer to Exhibit 21-10. Jose is experiencing increasing marginal returns

Question

Exhibit 21-10
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-Refer to Exhibit 21-10. Jose is experiencing increasing marginal returns

Quizplus · Accepted Answer

Increasing marginal returns occur when each additional unit of input (in this case, each additional hour of studying) results in a larger increase in output (in this case, the number of pages read) than the previous unit of input. In the scenario described, this happens up to the fourth hour of studying, after which the marginal returns start to decrease.

Exhibit 21-10 ​

Exhibit 21-10