Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number df } \
\text { wurkers }
\end{array} & \begin{array} { c }
\text { Caftee } \
\text { (cups/hour) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 25 \
\hline 2 & 45 \
\hline 3 & 60 \
\hline 4 & 70 \
\hline 5 & 75 \
\hline
\end{array}$$
The marginal product of the third worker is ________ than the marginal product of the second worker, implying that ________.
A)greater; diminishing returns are absent
B)less; diminishing returns are present
C)neither greater nor less; the third worker will be hired
D)less; the third worker will never be hired

Question

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number df } \
\text { wurkers }
\end{array} & \begin{array} { c } 
\text { Caftee } \
\text { (cups/hour) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 25 \
\hline 2 & 45 \
\hline 3 & 60 \
\hline 4 & 70 \
\hline 5 & 75 \
\hline
\end{array}$$  
The marginal product of the third worker is ________ than the marginal product of the second worker, implying that ________.
A)greater; diminishing returns are absent
B)less; diminishing returns are present
C)neither greater nor less; the third worker will be hired
D)less; the third worker will never be hired

Quizplus · Accepted Answer

The Answer is B

Espresso Yourself Coffee Shop Hires Workers in a Competitive Labor