Scenario 13-15
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 13-15.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

Farmer Jack's marginal cost curve reflects diminishing marginal product, as the additional watermelons produced from each additional bag of seeds decrease. However, the U-shape curve described in choice (i) is not applicable in this scenario, as there is no indication that Farmer Jack experiences increasing marginal costs at higher levels of watermelon output. Choice (ii) is also not entirely accurate, as Farmer Jack's marginal cost does increase with more bags of seeds planted, which means that the marginal cost per unit of watermelon output may not necessarily decrease with increased output. Therefore, the best choice is (B) only, as it accurately reflects the concept of diminishing marginal product in relation to marginal cost.

Scenario 13-15 Farmer Jack Is a Watermelon Farmer. If Jack Plants No