The production function in the table below exhibits decreasing marginal returns

Question

The production function in the table below exhibits decreasing marginal returns to capital over what output range? Production Function for Good N 0 Marginal Avcrage Labor Capital Output Product of Product of Capital Capital 10 57 324 26.7 657 1.072 41.5 1.524 45.2 1.976 45.2 5.70 16.20 30 40 50 60 70 2.391 415 80 90 100 3048 5.7 110 120 2945 71 26.80 30.48 32.93 34.16 S4.05 3.23 30 48 2742 24.54 9 2.724 33.3 2.991 A 3.016-3.2 Select one: a. Between 3,016 and 2.945 b. Between 2,391 and 3,048 c. Between 0 and 1,524 d. Between 0 and 2,991 o

Explanation / Answer

Answer is b. Between 2391 and 3048.

Explanation:

As reflecting in the table the marginal product of capital start diminishes from the output of 2391 and remains on declining trend till the output of 3048.

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