ECSENOMICS Diminishing returns and U-Shaped Cost Curves T-56 Figure 7-4 (a) Diminishing Returns (b)... Produce Upward-Sloping MC 0.3 0.2 0.1 B 40 Labor Output McGraw-Hillrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Diminishing Returns and U-Shaped Cost Curves T-56 Figure 7-4