The figure below depicts a production function for a firm that produces cookies.
Figure 12-4

Refer to Figure 12-4. As the number of workers increases,

Question

The figure below depicts a production function for a firm that produces cookies.
Figure 12-4

Refer to Figure 12-4. As the number of workers increases,

Quizplus · Accepted Answer

As the number of workers increases, the marginal product initially increases at an increasing rate but eventually starts to decrease due to diminishing marginal returns. As a result, the total output still increases but at a decreasing rate.

The Figure Below Depicts a Production Function for a Firm