Scenario 13-18
Farmer Jack is a watermelon farmer. If Jack plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 30 watermelons. If he plants 2 bags of seeds, he gets 50 watermelons. If he plants 3 bags of seeds he gets 60 watermelons. A bag of seeds costs $100, and the costs of seeds are his only costs.
-Refer to Scenario 13-18. Farmer Jack's marginal cost (i)
Curve is U-shaped.(ii)
Decreases with increased watermelon output.
(iii)
Reflects diminishing marginal product.

Question

Quizplus · Accepted Answer

The information given suggests that Farmer Jack's marginal cost curve will be U-shaped, which corresponds to option (ii). Additionally, since Farmer Jack's production function exhibits diminishing marginal product, his marginal cost will decrease as he produces more at first, but eventually increase as he experiences diminishing returns. This corresponds to the statement in option (iii). Therefore, the correct answer is (B) (iii) only.

Scenario 13-18 Farmer Jack Is a Watermelon Farmer. If Jack Plants No