Increasing marginal returns always occurs when the
A) marginal product of an additional worker exceeds the marginal product of the previous worker.
B) average product of an additional worker exceeds the average product of the previous worker.
C) marginal product of an additional worker is less than the marginal product of the previous worker.
D) average product of an additional worker is less than the average product of the previous worker.
E) marginal product of an additional worker exceeds the average product of the previous worker.

Question

Quizplus · Accepted Answer

Increasing marginal returns occur when the marginal product of an additional worker exceeds the marginal product of the previous worker. This means that adding another worker increases total output at an increasing rate.

Increasing Marginal Returns Always Occurs When the