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,
A) total output increases, but at a decreasing rate.
B) marginal product increases, but at a decreasing rate.
C) marginal product increases at an increasing rate.
D) total output decreases.

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,
A) total output increases, but at a decreasing rate. 
B) marginal product increases, but at a decreasing rate. 
C) marginal product increases at an increasing rate. 
D) total output decreases.

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