The Production Function for Good X in the Table Below

question 138

Multiple Choice

The production function for good X in the table below exhibits increasing marginal returns to capital over what output range?
$$\begin{array}{l}\text { Production Function far God } \mathbf { X }\\\begin{array} { l l l l l } L ^ { * } & K & Q & M _ { K } = ( \Delta Q / \Delta K ) & \begin{array} { l } \mathbf { M P } _ { K } = ( Q / K ) \\\text { Mverage }\end{array} \\\text { Labor } & \text { Capital } & \text { Output } & \begin{array} { l } \text { Product of } \\\text { Capital }\end{array} & \begin{array} { l } \text { Product of } \\\text { Capital }\end{array} \\9 & 0 & 0 & - & - \\9 & 10 & 57 & 5.7 & 5.70 \\9 & 20 & 324 & 26.7 & 16.20 \\9 & 30 & 657 & 33.3 & \mathbf { B } \\9 & 40 & 1,072 & 41.5 & 26.80 \\9 & 50 & 1,524 & 45.2 & 30.48 \\9 & 60 & 1,976 & 45.2 & 32.93 \\9 & 70 & 2,391 & 41.5 & 34.16 \\9 & 80 & 2,724 & 33.3 & 34.05 \\9 & 90 & 2,991 & \mathbf { A } & 33.23 \\9 & 100 & 3,048 & 5.7 & 30.48 \\9 & 110 & 3,016 & - 3.2 & 27.42 \\9 & 120 & 2,945 & - 7.1 & 24.54\end{array}\end{array}$$

• A) Between 0 and 1,524
• B) Between 0 and 2,991
• C) Between 2,391 and 3,048
• D) Between 3,016 and 2,945

---

Definitions:

Performance Appraisal

A systematic evaluation of an employee's performance at work, typically conducted by their supervisor to provide feedback and guide future development.

Formal Evaluation

The process of systematically assessing an employee's performance against predefined criteria or objectives through structured techniques.

Job Effectively

The proficiency and efficiency in performing tasks or responsibilities associated with one's employment.

Graphic Rating Scales

Graphic rating scales are tools used in performance appraisals where employees are rated on a scale for various competencies or behaviors.