Refer to the above table. Which of the following statements is correct?

A. The table follows economic principles because in an increasing cost industry, increases in a variable input will lead to increase in output.
B. The table does not follow economic principles because in an increasing cost industry, increases in a variable input will lead to decrease in output.
C. The table does not follow economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to an increase in the marginal physical product.
D. The table follows economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to a decrease in the marginal physical product.


Answer: D

Economics

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