-The table above shows the total product schedule for The X Firm. Decreasing marginal returns occur with the ________ worker because ________.
A) 6th; the marginal product of labour is greater than the average product of labour
B) 6th; output starts to decline
C) 5th; the marginal product of labour for the 5th worker is less than the marginal product of the 4th worker
D) 5th; the average product of labour is also declining
E) 4th; output reaches is maximum

Question

-The table above shows the total product schedule for The X Firm. Decreasing marginal returns occur with the ________ worker because ________.
A) 6th; the marginal product of labour is greater than the average product of labour 
B) 6th; output starts to decline 
C) 5th; the marginal product of labour for the 5th worker is less than the marginal product of the 4th worker 
D) 5th; the average product of labour is also declining 
E) 4th; output reaches is maximum

Quizplus · Accepted Answer

Decreasing marginal returns occur when the addition of an extra worker results in a lower marginal product than the previous worker. This is seen with the 5th worker, whose marginal product is less than that of the 4th worker, indicating decreasing marginal returns.

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