The figure below depicts a production function for a firm that produces cookies.
Figure 12-4
-Refer to Figure 12-4. With regard to cookie production, the figure implies
A) diminishing marginal product of workers.
B) diminishing marginal cost of cookie production.
C) decreasing cost of cookie production.
D) increasing marginal product of workers.

Question

The figure below depicts a production function for a firm that produces cookies.
Figure 12-4 
-Refer to Figure 12-4. With regard to cookie production, the figure implies
A) diminishing marginal product of workers. 
B) diminishing marginal cost of cookie production. 
C) decreasing cost of cookie production. 
D) increasing marginal product of workers.

Quizplus · Accepted Answer

The figure likely shows that as more workers are added, the additional output produced by each additional worker decreases, indicating diminishing marginal product.

The Figure Below Depicts a Production Function for a Firm