Question

A restaurateur spends $61 on labor and materials to produce 8 meals. by increasing these costs to $78, he can produce 14 meals. by increasing costs to $95, he can produce 20 meals. in terms ofcapital and labor, he has _____. decreasing marginal returns negative marginal returns increasing marginal returns constant marginal returns

Answer 1

Increasing marginal returns.

Answer 2

The best and most correct answer among the choices provided by the question is the second choice. He has to have negative marginal returns. I hope my answer has come to your help. God bless and have a nice day ahead! Feel free to ask more questions.