Question

According to the graph of marginal product of labor for a company that makes beanbags, which of the following situations is created when the fourth through seventh workers are hired
a. increasing marginal returns
b. marginal product of labor specialization
c. negative marginal returns
d. diminishing marginal returns

Answer 1

According to the graph of marginal product of labor for a company that makes beanbags, option D which is diminishing marginal returns is the correct answer. I hope this answer helps. Have a great day!

Answer 2

Answer:

d. diminishing marginal returns

Explanation:

Marginal return on work is a microeconomic concept that aims to measure the increase in the amount produced when an extra worker is hired.

When the fourth employee is contradicted, production increases by 6 units, ie the marginal return of the worker is 6 units. When the fifth employee is hired, production increases by 5 units. When the sixth employee is hired, the production increases by 3 units and when the seventh employee is hired, the production increases by one unit, thus the marginal return of this worker is 1 unit. This means that the productivity of each employee increases, but at a decreasing rate. In other words, marginal returns on production are decreasing from the fourth worker. Note that from the first to the second and from the second to the third marginal returns are increasing (6 and 7 respectively).