Scenario 12-13
Joan grows pumpkins.If Joan plants no seeds on her farm,she gets no harvest.If she plants 1 bag of seeds,she gets 500 pumpkins.If she plants 2 bags,she gets 800 pumpkins.If she plants 3 bags,she gets 900 pumpkins.A bag of seeds costs $100,and seeds are her only cost.
-Refer to Scenario 12-13.Joan's production function exhibits

Question

Quizplus · Accepted Answer

Joan's production function exhibits decreasing marginal product because as she adds more bags of seeds, the additional output (marginal product) decreases. For example, going from 1 to 2 bags of seeds increases output by 300 pumpkins, while going from 2 to 3 bags only increases output by 100 pumpkins. This indicates that the marginal product of each additional bag of seeds is decreasing.

Scenario 12-13 Joan Grows Pumpkins.If Joan Plants No Seeds on Her Farm,she