Table 7-6
Number of ovens
2
2
2
2
2
2
2
2
Labor hours used
1
2
3
4
5
6
7
8
Loaves of bread produced
20
34
55
70
82
91
94
92
Table 7-6 shows a baker’s daily production relationship for bread. Diminishing returns to labor begin when the baker goes from

A. one hour of labor to two hours of labor.
B. three hours of labor to four hours of labor.
C. six hours of labor to seven hours of labor.
D. seven hours of labor to eight hours of labor.


Answer: B

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