$\begin{array}{l}
\begin{array} { | c | c | }
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}\
\text { Table 21.1 }
\end{array}$ With which unit of labor do diminishing marginal returns first appear in Table 21.1?
A)The first.
B)The second.
C)The third.
D)The fourth.

Question

$\begin{array}{l}
\begin{array} { | c | c | } 
\hline \text { Units of Labor } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 15 \
\hline 2 & 35 \
\hline 3 & 45 \
\hline 4 & 52 \
\hline
\end{array}\
\text { Table 21.1 }
\end{array}$ With which unit of labor do diminishing marginal returns first appear in Table 21.1?
A)The first.
B)The second.
C)The third.
D)The fourth.

Quizplus · Accepted Answer

Diminishing marginal returns start to appear with the third unit of labor in Table 21.1. This is because the increase in output from 2 to 3 units of labor is less than the increase in output from 1 to 2 units of labor, indicating that the production function is becoming less efficient with each additional unit of labor beyond 2.

With Which Unit of Labor Do Diminishing Marginal Returns First