-Refer to the above table. At what quantity of labor does the law of diminishing marginal product set in?
A) after 1 unit
B) after 2 units
C) after 3 units
D) after 6 units

Question

-Refer to the above table. At what quantity of labor does the law of diminishing marginal product set in?
A) after 1 unit 
B) after 2 units 
C) after 3 units 
D) after 6 units

Quizplus · Accepted Answer

The law of diminishing marginal product sets in when the additional output from an extra unit of labor starts to decrease. This typically occurs after a certain point of adding labor, assuming other factors remain constant. Without the specific table data, the general principle is that after initially increasing, the marginal product (additional output per additional unit of labor) begins to fall, indicating the onset of diminishing returns. Since the correct choice is B, it implies that after adding 2 units of labor, the additional output from each subsequent unit of labor begins to decrease.

-Refer to the Above Table