Exhibit 7-1 Production of pizza data

Exhibit 7-1 shows the change in the short-run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is:

Question

Exhibit 7-1 Production of pizza data

Exhibit 7-1 shows the change in the short-run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is:

Quizplus · Accepted Answer

Diminishing marginal product of labor is due to decreasing labor productivity, which means each additional worker is adding less output than the previous worker. The other options (B, C, D) do not explain the decreasing marginal product.

Exhibit 7-1 Production of Pizza Data