Figure: The Total Product (Figure: The Total Product) Look at the figure The Total Product.Labor added L1 and up to L2 is:
A)subject to diminishing marginal returns.
B)adding increasing amounts to total product.
C)adding negative amounts to total product.
D)adding negative amounts to total product and are subject to diminishing marginal returns.

Question

Figure: The Total Product  (Figure: The Total Product) Look at the figure The Total Product.Labor added L1 and up to L2 is:
A)subject to diminishing marginal returns. 
B)adding increasing amounts to total product. 
C)adding negative amounts to total product. 
D)adding negative amounts to total product and are subject to diminishing marginal returns.

Quizplus · Accepted Answer

As we move from L1 to L2, the slope of the TP curve starts decreasing, indicating diminishing marginal returns to labor.

Figure: the Total Product (Figure: the Total Product) Look