Figure 12-2
-Refer to Figure 12-2.As the number of workers increases,
A) marginal product decreases.
B) total output decreases.
C) marginal product increases but at a decreasing rate.
D) Both a and b are correct.

Question

Figure 12-2 
-Refer to Figure 12-2.As the number of workers increases,
A) marginal product decreases. 
B) total output decreases. 
C) marginal product increases but at a decreasing rate. 
D) Both a and b are correct.

Quizplus · Accepted Answer

As the number of workers increases, the marginal product (the additional output produced by each additional worker) decreases. This is shown by the downward sloping curve labeled "marginal product" in the graph. Total output initially increases as more workers are added, but eventually reaches a point where the marginal product becomes negative and total output starts decreasing. Therefore, choice B is not correct. Choice C is partially correct in that marginal product initially increases with each additional worker, but it eventually starts decreasing. However, this is not the overall trend as the marginal product curve ultimately slopes downwards. Therefore, choice A is the best choice.

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