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Jeremiah Runs a Bullfrog Farm in Frogville,Oklahoma

Question 68

Multiple Choice

Jeremiah runs a bullfrog farm in Frogville,Oklahoma.Jeremiah notices that each additional worker he employs adds more to the total output than does the previous worker.Jeremiah must be


A) experiencing increasing marginal returns to labor.
B) producing at a point where the average product of labor decreases as more workers are employed.
C) producing at a point below his total product curve.
D) mistaken because the law of decreasing returns points out that it cannot be the case that the marginal product increases as more workers are employed.
E) producing at a point where the average product of labor exceeds the marginal product of labor.

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