On a 100-acre farm,a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers.He is able to produce 4,400 bushels of wheat when he hires 3 workers.Which of the following possibilities is consistent with the property of diminishing marginal product?

Question

Quizplus · Accepted Answer

The marginal product of the third worker is 1,400 bushels (4,400 - 3,000). For diminishing marginal product, the fourth worker should add less than 1,400 bushels. In option A, the fourth worker adds 1,200 bushels (5,600 - 4,400), which is consistent with diminishing marginal product.

On a 100-Acre Farm,a Farmer Is Able to Produce 3,000