Increasing Marginal Returns Occur When the

Multiple Choice

Increasing marginal returns occur when the

A) average product of an additional worker is less than the average product of the previous worker.
B) marginal product of an additional worker exceeds the marginal product of the previous worker.
C) marginal product of labor is less than the average product of labor.
D) total output of the firm is at its maximum.
E) total product curve is horizontal.