Table 13-4
Charles's Math Tutoring
-Refer to Table 13-4. Charles's math tutoring company experiences diminishing marginal productivity with the addition of the
A)first worker.
B)second worker.
C)third worker.
D)fourth worker.

Question

Table 13-4
Charles's Math Tutoring 
-Refer to Table 13-4. Charles's math tutoring company experiences diminishing marginal productivity with the addition of the
A)first worker. 
B)second worker. 
C)third worker. 
D)fourth worker.

Quizplus · Accepted Answer

As shown in the table, the total product of labor increases from 10 to 20 when the second worker is added, but only increases from 20 to 27 when the third worker is added. This indicates diminishing marginal productivity, which means that each additional worker contributes less to the total output than the one before. Therefore, the best choice would be to hire only up to the third worker.

Table 13-4 Charles's Math Tutoring