Answered: 5. Diminishing marginal returns sets in…

5. Diminishing marginal returns sets in when worker is hired." the a. Second O b. Third O c. Fourth d. None of the above; the production O function displays increasing marginal returns

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Diminishing marginal returns sets in when
the
worker is hired. *
O a. Second
O b. Third
) c. Fourth
d. None of the above; the production
function displays increasing marginal
returns

Total Fixed Total Variable
Labor
Output
cost
(workers) (units per day) (dollars)
20
20
20
20
20
20
Cost
(dollars)
13
16
18
25
50
75
100
125
4.

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39
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