Use the following to answer questions :
Scenario: The Decision to Hire Labour
Assume that both the product market and the labour market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labour is given in the table that follows. $\begin{array}{llcc}
\hline \text { Quantity } & \
\text { of Labour } & \text { Quantity } \
\text { (workers) } & \text {of Output }\
\hline 0&0\
1 &7\
2 &13\
3&18\
4&21\
\hline
\end{array}$

-(Scenario: The Decision to Hire Labour)Use Scenario: The Decision to Hire Labour.This firm experiences diminishing marginal product after it hires the _____ worker.
A) first
B) second
C) third
D) fourth

Question

Use the following to answer questions :
Scenario: The Decision to Hire Labour
Assume that both the product market and the labour market are perfectly competitive.The price of this firm's product is $5.The firm's total product with respect to labour is given in the table that follows. $\begin{array}{llcc}
 \hline  \text { Quantity } &  \
 \text { of Labour } & \text {  Quantity } \
 \text { (workers)  } & \text {of Output  }\
\hline 0&0\
1 &7\
2 &13\
3&18\
4&21\
\hline
\end{array}$

-(Scenario: The Decision to Hire Labour)Use Scenario: The Decision to Hire Labour.This firm experiences diminishing marginal product after it hires the _____ worker.
A) first
B) second
C) third
D) fourth

Quizplus · Accepted Answer

The marginal product of labor decreases after the first worker, as the additional output from hiring the second worker is less than the additional output from hiring the first worker.

Use the Following to Answer Questions : Scenario: the Decision

Use the Following to Answer Questions :
Scenario: the Decision