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Use the data in the table below to answer questions 1 through 10.Input Total product0 01 42 83 154 225 256 277 288 24What range of inputs provides increasing marginal returns?A.Up to 4B.Between 3 and 4C.Up to 2D.8 and aboveE.5 and above

Question

Use the data in the table below to answer questions 1 through 10.Input Total product0 01 42 83 154 225 256 277 288 24What range of inputs provides increasing marginal returns?A.Up to 4B.Between 3 and 4C.Up to 2D.8 and aboveE.5 and above

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Solution

To answer this question, we first need to understand what marginal returns are. Marginal returns refer to the additional output resulting from using an additional unit of input.

To calculate the marginal product, we subtract the total product of the previous input from the total product of the current input.

Here's the calculation:

  • From 0 to 1 input, the total product increases from 0 to 4. So, the marginal product is 4.
  • From 1 to 2 inputs, the total product increases from 4 to 8. So, the marginal product is 4.
  • From 2 to 3 inputs, the total product increases from 8 to 15. So, the marginal product is 7.
  • From 3 to 4 inputs, the total product increases from 15 to 22. So, the marginal product is 7.
  • From 4 to 5 inputs, the total product increases from 22 to 25. So, the marginal product is 3.
  • From 5 to 6 inputs, the total product increases from 25 to 27. So, the marginal product is 2.
  • From 6 to 7 inputs, the total product increases from 27 to 28. So, the marginal product is 1.
  • From 7 to 8 inputs, the total product decreases from 28 to 24. So, the marginal product is -4.

From this, we can see that the marginal product increases up to the 4th input, then starts to decrease. Therefore, the range of inputs that provides increasing marginal returns is up to 4.

So, the answer is A. Up to 4.

This problem has been solved

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