Use the following for questions 37-43.
Exhibit: Total Product

-(Exhibit: Total Product) Units of labor added after L₁ and up to L₂ are:
A) subject to diminishing marginal returns.
B) adding increasing amounts to total product.
C) adding positive amounts to total product.
D) described in A and C.

Question

Use the following for questions 37-43.
Exhibit: Total Product
 
-(Exhibit: Total Product) Units of labor added after L₁ and up to L₂ are:
A) subject to diminishing marginal returns. 
B) adding increasing amounts to total product. 
C) adding positive amounts to total product. 
D) described in A and C.

Quizplus · Accepted Answer

Units of labor added after L₁ and up to L₂ are subject to diminishing marginal returns, as stated in option A. However, they still add positive amounts to total product, as stated in option C. Therefore, the answer is D.

Use the Following for Questions 37-43