Figure 13-1
The figure depicts a production function for a firm that produces cookies.

-Refer to Figure 13-1.As the number of workers increases,what happens to the firm's production
A)total output increases, but at a decreasing rate
B)marginal product increases, but at a decreasing rate
C)marginal product increases at an increasing rate
D)total output increases, at an increasing rate

Question

Figure 13-1
The figure depicts a production function for a firm that produces cookies.
 
-Refer to Figure 13-1.As the number of workers increases,what happens to the firm's production
A)total output increases, but at a decreasing rate 
B)marginal product increases, but at a decreasing rate 
C)marginal product increases at an increasing rate 
D)total output increases, at an increasing rate

Quizplus · Accepted Answer

As the number of workers increases, total output increases, but at a decreasing rate. This is due to the law of diminishing marginal returns, which states that as additional units of a variable input (in this case, labor) are added to a fixed input (such as capital), the marginal product of that variable input will eventually decrease.

Figure 13-1 The Figure Depicts a Production Function for a Firm That