Figure 11-1
-Refer to Figure 11-1.Using the per-worker production function in the figure above,the largest changes in an economy's standard of living would be achieved by a movement from
A)A to B to C.
B)B to C to D.
C)C to B to A.
D)D to C to B.

Question

Figure 11-1 
-Refer to Figure 11-1.Using the per-worker production function in the figure above,the largest changes in an economy's standard of living would be achieved by a movement from
A)A to B to C. 
B)B to C to D. 
C)C to B to A. 
D)D to C to B.

Quizplus · Accepted Answer

Moving from point B to point C would result in the largest increase in output per worker. This is because the marginal product of labor is highest at point C. Moving from point C to point D would also result in an increase in output per worker, but it would not be as large as the increase from B to C. Moving from A to B would result in an increase in output, but it would not be as large as the increase from B to C. Moving from D to C to B would result in a decrease in output per worker.

Figure 11-1 -Refer to Figure 11-1.Using the Per-Worker Production Function in the Function