The production function in the above table exhibits decreasing marginal returns to capital over what output range?

Question

Quizplus · Accepted Answer

The production function exhibits decreasing marginal returns to capital when the change in output resulting from an additional unit of capital decreases as the amount of capital increases. In the above table, we can see that the change in output resulting from an additional unit of capital decreases between 2,391 and 3,048 units of output, indicating that this range exhibits decreasing marginal returns to capital. Therefore, the correct answer is C.

The Production Function in the Above Table Exhibits Decreasing Marginal