-In Exhibit Q-1, diminishing returns sets in when the ______ unit of capital (or loanablefunds) is hired.

Question

Quizplus · Accepted Answer

Diminishing returns occur when adding an additional factor of production results in a smaller increase in output. Without specific data from Exhibit Q-1, the correct answer cannot be determined. However, based on standard economic theory, the point at which diminishing returns set in is when the marginal gain from an additional unit of capital decreases for the first time, which would be indicated by the exhibit referenced.

-In Exhibit Q-1, Diminishing Returns Sets in When the ______