Increasing marginal returns for the first four units of a variable input is exhibited by the total product sequence:
A) 50, 50, 50, 50.
B) 50, 40, 30, 20.
C) 50, 110, 180, 260.
D) 50, 100, 150, 200.

Question

Quizplus · Accepted Answer

Increasing marginal returns mean that each additional unit of input results in a larger increase in output. In option C, each additional unit of input increases the total product by an increasing amount (60, 70, 80), indicating increasing marginal returns.

Increasing Marginal Returns for the First Four Units of a Variable