According to the information provided, Jack's production function will:
A)increase at an increasing rate
B)increase at a decreasing rate
C)decrease at a decreasing rate
D)decrease at an increasing rate

Question

Quizplus · Accepted Answer

According to the statement, Jack is experiencing diminishing marginal returns, which means that as he adds more inputs (in this case, employees), the increase in output will eventually slow down. This is consistent with an increasing production function that increases at a decreasing rate.

According to the Information Provided, Jack's Production Function Will