Joseph has a kiwifruit orchard, and he has all the required factors of production: land, vines, workers, fertilizer, and water. He has decided how much of each input he will need, but he hasn't yet decided how much fertilizer he will use.

Joseph knows that if he increases the amount of fertilizer, the output of kiwifruit will increase. However, it may reach a point where too much fertilizer will poison the plant and decrease his output.

The law of diminishing returns states that there will be a point where the additional output of kiwifruit gained from one additional unit of fertilizer will be less than the additional output of kiwifruit from the previous increase in fertilizer.

This table shows the output of kiwifruit per unit of fertilizer:

Joseph has a kiwifruit orchard, and he has all the required factors of production: land, vines, workers, fertilizer, and water. He has decided how much of each input he will need, but he hasn't yet decided how much fertilizer he will use.

Joseph knows that if he increases the amount of fertilizer, the output of kiwifruit will increase. However, it may reach a point where too much fertilizer will poison the plant and decrease his output.

The law of diminishing returns states that there will be a point where the additional output of kiwifruit gained from one additional unit of fertilizer will be less than the additional output of kiwifruit from the previous increase in fertilizer.

This table shows the output of kiwifruit per unit of fertilizer:

At which point does adding one additional unit of fertilizer hit the law of diminishing returns?

A. Between 1 and 2 B. Between 2 and 3 C. Between 3 and 4 D. Use all four; we have not hit the law of diminishing returns.