Table: Linda's Copy Shop Production
(Table: Linda's Copy Shop Production) Look at the table Linda's Copy Shop Production.Linda's production runs into diminishing returns to her variable inputs when she employs the unit.
A)second .
B)third
C)fourth .
D)fifth

Question

Quizplus · Accepted Answer

Diminishing returns occur when additional units of a variable input (such as labor) lead to decreasing marginal product, or the additional output produced by adding one more unit of the input. Based on the table, Linda experiences diminishing returns starting with the fourth unit of labor, as the marginal product decreases from 200 to 150. Therefore, option C is the only correct choice.