Question

Cabinets question

Diminishing marginal returns occur when: O total product decreases. O each additional unit of a variable factor adds more to total output than the previous unit. the marginal product of a variable factor is increasing at a decreasing rate. each additional unit of a variable factor adds less to total output than the previous unit. Marginal Product of Labor of Labor Quantity of (workers) Cabinets (cabinets per worker) cost, how many workers would your firm employ? (Table: Production of Cabinets) Look at the table The Production of Cabinets. If each cabinetmaker could be hired at no O eight O six O two O seven 19. Figure: Change in the Total Product Quantity of output Remaining: 32:21 Start: 2:20 PM

Answer 1

D. Each additional unit of a variable factor as less to total output than the previous unit.

Acc to the law of marginal diminishing returns, the above statement is correct.

C. Two

As they have the highest marginal product.