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The Following Question Are Based on the Following Information

Question 25

Multiple Choice

The following question are based on the following information:
A firm uses inputs of labor, fertilizer, and land to produce strawberries (which are sold to wholesalers and processors) . The quantity of land used is fixed at eight acres per season and the production function implies the relationships in the following table:
The following question are based on the following information: A firm uses inputs of labor, fertilizer, and land to produce strawberries (which are sold to wholesalers and processors) . The quantity of land used is fixed at eight acres per season and the production function implies the relationships in the following table:    -It can be said that this firm experiences diminishing returns beyond the employment of the ________ unit of labor. A)  first B)  second C)  third D)  fourth E)  fifth
-It can be said that this firm experiences diminishing returns beyond the employment of the ________ unit of labor.


A) first
B) second
C) third
D) fourth
E) fifth

Correct Answer:

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