Table 7.2
$$\begin{array} { c c }
\text { Labor } & \begin{array} { c }
\text { Total Froduct } \
\text { (pairs of shoes) }
\end{array} \
\hline 0 & 0 \
1 & 20 \
2 & 50 \
3 & 75 \
4 & 80 \
5 & 75
\end{array}$$
-Refer to Table 7.2,which shows labor and the quantity of shoes produced by a firm.At which point do diminishing marginal returns set in?
A)before the first unit of labor
B)between the first and second units of labor
C)between the second and third units of labor
D)between the third and fourth units of labor
E)between the fourth and fifth units of labor

Question

Table 7.2
 $$\begin{array} { c c } 
\text { Labor } & \begin{array} { c } 
\text { Total Froduct } \
\text { (pairs of shoes) }
\end{array} \
\hline 0 & 0 \
1 & 20 \
2 & 50 \
3 & 75 \
4 & 80 \
5 & 75
\end{array}$$
-Refer to Table 7.2,which shows labor and the quantity of shoes produced by a firm.At which point do diminishing marginal returns set in?
A)before the first unit of labor
B)between the first and second units of labor
C)between the second and third units of labor
D)between the third and fourth units of labor
E)between the fourth and fifth units of labor

Quizplus · Accepted Answer

Diminishing marginal returns set in when the additional output from an additional unit of labor starts to decrease. The marginal product decreases from 30 (between 1st and 2nd) to 25 (between 2nd and 3rd).

Table 72 -Refer to Table 7