If diminishing marginal returns have already set in for Golden Lark Woodworks,and the marginal product of the sixth carpenter is eight chairs,what is the marginal product of the seventh carpenter?

Question

Quizplus · Accepted Answer

Diminishing marginal returns imply that the marginal product of each additional unit of input is decreasing. Therefore, the marginal product of the seventh carpenter is likely to be less than the marginal product of the sixth carpenter, which is eight chairs. Option A is incorrect because negative marginal product does not make sense (it would imply that adding another carpenter reduces the output of the entire team). Option C is unlikely because it is already established that diminishing marginal returns have set in. Option D is unlikely as well because adding one more carpenter should still contribute some additional output, even if it is small. Therefore, option B is the best answer.

If Diminishing Marginal Returns Have Already Set in for Golden