-The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the ________ worker because ________.
A) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker
B) 5th; output declines with the 6th worker
C) 5th; output is maximised
D) 4th; the average product of labour is also increasing
E) 3rd; the average product of labour is also increasing

Question

-The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the ________ worker because ________.
A) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker 
B) 5th; output declines with the 6th worker 
C) 5th; output is maximised 
D) 4th; the average product of labour is also increasing 
E) 3rd; the average product of labour is also increasing

Quizplus · Accepted Answer

Increasing marginal returns occur until the 4th worker because the marginal product of the 4th worker exceeds that of the 3rd worker, indicating that each additional worker is contributing more to output than the previous one, but this does not continue with the 5th worker.

-The Table Above Shows the Total Product Schedule for the X