A firm uses workers and seed to grow lettuce.Its lettuce output rises from 100 tons to 200 tons when the number of workers increases from 25 to 75.Its production process shows
A)decreasing returns to scale.
B)diminishing returns to labor.
C)increasing long-run average cost.
D)decreasing short-run average variable cost.

Question

Quizplus · Accepted Answer

The increase in lettuce output is not proportional to the increase in workers, which indicates that there are diminishing returns to labor. This means that the marginal product of labor is decreasing as more workers are hired, which could be due to limited land or seed availability or simply due to crowding of workers. The other choices do not necessarily follow from the information given.

A Firm Uses Workers and Seed to Grow Lettuce