Use the following to answer questions :
Table 6-1
-Suppose that production were defined by the function recorded in Table 6-1 above.For diminishing returns to continue to hold for the 7th unit of labor with land equal to 15 units, total product for the combination of (labor =7; land = 15)would have to be less than:
A)0.
B)116.67.
C)115.67.
D)114.67.
E)none of the above.

Question

Use the following to answer questions :
Table 6-1 
-Suppose that production were defined by the function recorded in Table 6-1 above.For diminishing returns to continue to hold for the 7th unit of labor with land equal to 15 units, total product for the combination of (labor =7; land = 15)would have to be less than:
A)0. 
B)116.67. 
C)115.67. 
D)114.67. 
E)none of the above.

Quizplus · Accepted Answer

For diminishing returns to continue to hold, the total product must increase at a decreasing rate as more units of labor are added, given a fixed amount of land. If the total product for the 7th unit of labor with 15 units of land is less than 116.67, it indicates that the increase in total product from adding the 7th unit of labor is smaller than the increase from the previous unit of labor, thus demonstrating diminishing returns.

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