Exhibit 6-1
-Refer to Exhibit 6-1. Diminishing returns to labor is illustrated by
A)increasing output.
B)decreasing output.
C)output increasing at a decreasing rate.
D)output increasing at an increasing rate.
E)increasing input.

Question

Exhibit 6-1 
-Refer to Exhibit 6-1. Diminishing returns to labor is illustrated by
A)increasing output. 
B)decreasing output. 
C)output increasing at a decreasing rate. 
D)output increasing at an increasing rate. 
E)increasing input.

Quizplus · Accepted Answer

Diminishing returns to labor occur when additional units of labor bring about smaller, diminishing increases in output. This is represented by the output increasing at a decreasing rate, as shown in the exhibit.

Exhibit 6-1 -Refer to Exhibit 6-1. Diminishing Returns to Labor Is Illustrated