When Caroline's dress factory hires two workers, the total product is 50 dresses.When she hires three workers, total product is 60, and when she hires four workers, total product is 65.The slope of the marginal product curve when two to four workers are hired is
A)upward sloping.
B)horizontal.
C)vertical.
D)downward sloping.

Question

Quizplus · Accepted Answer

As the total product increases only slightly when moving from two workers to three workers but increases only slightly again when moving from three workers to four workers, this indicates that the marginal product of labor is diminishing. Therefore, the slope of the marginal product curve is downward.

When Caroline's Dress Factory Hires Two Workers, the Total Product