Scenario 12-15
Farmer Jack is a watermelon farmer.If Jack plants no seeds on his farm,he gets no harvest.If he plants 1 bag of seeds,he gets 30 watermelons.If he plants 2 bags of seeds,he gets 50 watermelons.If he plants 3 bags of seeds he gets 60 watermelons.A bag of seeds costs $100,and the costs of seeds are his only costs.
-Refer to Scenario 12-15.Which of the following statements is (are)true? (i)Farmer Jack experiences decreasing marginal product.
(ii)Farmer Jack's production function is nonlinear.
(iii)Farmer Jack's total cost curve is linear.

Question

Quizplus · Accepted Answer

(i) is true because as Farmer Jack increases the number of bags of seeds, he experiences diminishing marginal returns - the additional output per additional bag of seeds decreases. 
(ii) is true because Farmer Jack's production function is not linear - the increase in bags of seeds does not lead to a proportional increase in watermelon output. 
(iii) is not true because Farmer Jack's total cost curve would not be perfectly linear since he incurs a fixed cost for each bag of seeds planted.

Scenario 12-15 Farmer Jack Is a Watermelon Farmer.If Jack Plants No Seeds