Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is TRUE?
A) Rogue's marginal product curve initially increases and then decreases.
B) Rogue's marginal product curve decreases continually.
C) Rogue's total product curve increases at an increasing rate.
D) Rogue's marginal product curve decreases initially and then increases.

Question

Quizplus · Accepted Answer

The marginal product initially increases from 15 to 20 (from 1 to 2 employees) and then decreases from 20 to 15 (from 2 to 3 employees) and further to 5 (from 3 to 4 employees).

Minneapolis Business Rogue Chocolatier Sells Specialty Chocolate Bars with a High