Scenario 1: the Following Is a Hypothetical Short-Run Production Function

question 75

Multiple Choice

Scenario 1: The following is a hypothetical short-run production function:

-Refer to Scenario 1.The production function illustrated in the table:

• A)incurs diminishing marginal returns beyond the first unit of labor.
• B)incurs diminishing marginal returns beyond the second unit of labor.
• C)incurs diminishing marginal returns beyond the third unit of labor.
• D)does not incur diminishing marginal returns because marginal product is positive for each unit of labor employed.

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