Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor.
-In Figure 7.2,the law of diminishing marginal returns comes into play beyond point _____.
A)A
B)B
C)C

Question

Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor. 
-In Figure 7.2,the law of diminishing marginal returns comes into play beyond point _____.
A)A 
B)B 
C)C

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as additional units of a variable input (like labor) are added to a fixed input (like capital or land), the additional output (marginal returns) from each new unit of input will eventually decrease. Point B represents the stage beyond which each additional unit of input results in a smaller increase in output, indicating the beginning of diminishing marginal returns.

Use the Following Figure to Answer the Questions