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

Refer to Figure 12-4. With regard to cookie production, the figure implies
A) diminishing marginal product of workers.
B) diminishing marginal cost of cookie production.
C) decreasing cost of cookie production.
D) increasing marginal product of workers.

Question

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

Refer to Figure 12-4. With regard to cookie production, the figure implies
A) diminishing marginal product of workers. 
B) diminishing marginal cost of cookie production. 
C) decreasing cost of cookie production. 
D) increasing marginal product of workers.

Quizplus · Accepted Answer

The figure shows a production function that exhibits diminishing marginal product of workers, as indicated by the flattening of the marginal product of labor curve. This means that as more workers are hired, each additional worker contributes less and less to total cookie production.

The Figure Below Depicts a Production Function for a Firm