The figure below depicts a production function for a firm that produces cookies.
Figure 12-4
-Refer to Figure 12-4. As the number of workers increases,
A) total output increases, but at a decreasing rate.
B) marginal product increases, but at a decreasing rate.
C) marginal product increases at an increasing rate.
D) total output decreases.

Question

The figure below depicts a production function for a firm that produces cookies.
Figure 12-4 
-Refer to Figure 12-4. As the number of workers increases,
A) total output increases, but at a decreasing rate. 
B) marginal product increases, but at a decreasing rate. 
C) marginal product increases at an increasing rate. 
D) total output decreases.

Quizplus · Accepted Answer

As more workers are added, total output continues to increase, but each additional worker contributes less to total output than the previous one, indicating diminishing returns.

The Figure Below Depicts a Production Function for a Firm