The law of diminishing marginal returns is first evident in the followingtable
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 followingtable 
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 and more units of a variable input (such as labor) are added to a fixed input (such as machinery or land), the output will eventually increase at a diminishing rate. In this table, we can see that the marginal product of labor (MPL) initially increases with each additional worker, but after the third worker, MPL begins to decrease. This is the point at which the law of diminishing marginal returns becomes evident. Therefore, the best choice is C, when the third unit of labor is added.

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