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

Question

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

Quizplus · Accepted Answer

Initially, as more workers are hired, the marginal product of each worker increases, leading to an increase in total output at an increasing rate. However, as the number of workers continues to increase, the marginal product of each worker begins to diminish, resulting in a decrease in the rate of increase of total output. Therefore, option A, total output increases but at a decreasing rate, is the correct choice.

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