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guajiro [1.7K]
4 years ago
7

Joan grows pumpkins. If Joan plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she gets 500 pumpki

ns. If she plants 2 bags, she gets 800 pumpkins. If she plants 3 bags, she gets 900 pumpkins. A bag of seeds costs $100, and seeds are her only cost. Joan's production function exhibitsA. Increasing marginal product. B. Decreasing marginal product. C. Constant marginal product. D. Any of the above could be correct.
Business
1 answer:
valkas [14]4 years ago
3 0

Answer: Option (B) is correct.

Explanation:

Correct option: Decreasing marginal product.

Marginal product is the change in the level of output, when there will be an extra input employed in the production of a certain commodity.

So, Marginal Product = \frac{change\ in\ Q}{Change\ in\ I}

Where,

Q = Output

I = Input

Marginal product of 1st bag = 500

Marginal product of 2nd bag =  \frac{800-500}{2-1} = 300

Marginal product of 3rd bag =  \frac{900-800}{3-2} = 100

∴ From the above calculations, we can seen that as we employed one more bag of seeds as a result marginal product goes on diminishing.

Hence, Joan's production function exhibits decreasing marginal product.

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3 years ago
Other than directly observing the market, how do most companies get their market research? (Check all that apply.)
kozerog [31]

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<h3> Newspaper advertorials </h3>

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7 0
2 years ago
Costello Corporation reported pretax book income of $500,900. During the current year, the reserve for bad debts increased by $6
raketka [301]

Answer:

Deferred income tax expense = $7,161

Explanation:

Given:

Bed debts increase = $6,800

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6 0
3 years ago
Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation c
vampirchik [111]

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3 years ago
EB8.
Stolb23 [73]

Answer:

The fixed costs per unit when 20,000 units are produced are $6.05 per unit.

Explanation:

Fixed costs per unit can be determined by using the following formula:

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