Figure 13-2
-Refer to Figure 13-2. As the number of workers increases,
A)marginal product decreases.
B)total output decreases.
C)marginal product increases but at a decreasing rate.
D)Both a and b are correct.

Question

Figure 13-2 
-Refer to Figure 13-2. As the number of workers increases,
A)marginal product decreases. 
B)total output decreases. 
C)marginal product increases but at a decreasing rate. 
D)Both a and b are correct.

Quizplus · Accepted Answer

According to the law of diminishing marginal returns, as more units of a variable input (such as labor) are added to a fixed input (such as capital), eventually the marginal product of the variable input will decrease. Therefore, as the number of workers increases, the marginal product of each worker will decrease. Option B is incorrect as total output may still increase, but at a decreasing rate.

Figure 13-2 -Refer to Figure 13-2. as the Number of Workers Increases