As a company adds the first four workers to its production process in the short run, its output rises from 0 to 12 to 25 to 35 to 43. Addition of the fifth worker will most likely lead to an output rate

Question

Quizplus · Accepted Answer

The marginal product of labor is decreasing, indicating diminishing returns. Thus, the addition of the fifth worker will likely result in an output increase of less than 8, making the total output less than 51.

As a Company Adds the First Four Workers to Its