Exhibit 7-1 Production of pizza data

Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the labor input begins to fall with the employment of the
A) first worker.
B) second worker.
C) third worker.
D) fourth worker.

Question

Exhibit 7-1 Production of pizza data

Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the labor input begins to fall with the employment of the
A) first worker. 
B) second worker. 
C) third worker. 
D) fourth worker.

Quizplus · Accepted Answer

The marginal product of labor begins to fall after the third worker is hired. This is indicated by the fact that the increase in the number of pizzas produced with the addition of the fourth worker (from 45 to 50) is smaller than the increase seen with the addition of the third worker (from 30 to 45).

Exhibit 7-1 Production of Pizza Data