Table 11-1

Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May.
-Refer to Table 11-1.Diminishing marginal returns sets in when the ________ worker is hired.
A)2nd
B)3rd
C)4th
D)None of the above; the production function displays increasing marginal returns.

Question

Table 11-1
  
Table 11-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May.
-Refer to Table 11-1.Diminishing marginal returns sets in when the ________ worker is hired.
A)2nd 
B)3rd 
C)4th 
D)None of the above; the production function displays increasing marginal returns.

Quizplus · Accepted Answer

According to the table, there is an increase in production up to the 3rd worker hired, after which the marginal product of labor starts to decrease, indicating diminishing marginal returns. Therefore, the best choice is option B, which corresponds to the 3rd worker.

Table 11-1 Table 11-1 Shows the Technology of Production at the Matsuko's