New 55% Off on All Courses - Enroll Now! Click Here

    Question

    The 2nd phase (diminishing returns to a factor) is

    exhibited by the following total product sequence:
    A 50, 50, 50, 50 Correct Answer Incorrect Answer
    B 50, 110, 180, 260 Correct Answer Incorrect Answer
    C 50, 100, 150, 200 Correct Answer Incorrect Answer
    D 50, 90, 120,140 Correct Answer Incorrect Answer

    Solution

    In the second phase, total product increases but marginal product is declining.

    Practice Next