Figure 12-2
-Refer to Figure 12-2.As the number of workers increases,
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 decreases.

Question

Figure 12-2 
-Refer to Figure 12-2.As the number of workers increases,
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 decreases.

Quizplus · Accepted Answer

The graph shows a typical short-run production function with diminishing marginal returns. As more workers are added, total output continues to increase, but at a decreasing rate due to diminishing marginal returns. Marginal product also increases initially but at a decreasing rate, eventually reaching a maximum and then decreasing as well. Therefore, answer choice A is the correct answer.

Figure 12-2 -Refer to Figure 12-2.As the Number of Workers Increases