Graph 13-1 This graph depicts a production function for a firm that produces cookies.Use the
graph to answer the following question(s).
-Refer to Graph 13-1.With regard to cookie production, the figure implies:
A)decreasing cost of cookie production
B)diminishing marginal product of workers
C)increasing marginal product of workers
D)diminishing marginal cost of cookie production

Question

Graph 13-1  This graph depicts a production function for a firm that produces cookies.Use the
graph to answer the following question(s).
-Refer to Graph 13-1.With regard to cookie production, the figure implies:
A)decreasing cost of cookie production 
B)diminishing marginal product of workers 
C)increasing marginal product of workers 
D)diminishing marginal cost of cookie production

Quizplus · Accepted Answer

The graph shows that as more workers are hired, the marginal product of labor initially increases and then decreases. This indicates diminishing marginal product of workers, which is commonly observed in production processes. The graph does not provide any information regarding the cost of production or marginal cost.

Graph 13-1 This Graph Depicts a Production Function for a Firm