When Caroline's dress factory hires two workers,the total product is 50 dresses.When she hires three workers,total product is 48,and when she hires four workers,total product is 45.The marginal product of the third and fourth workers is:

A) increasing and positive.
B) increasing and negative.
C) decreasing and positive.
D) decreasing and negative.

Question

Ashlyn Payne · Accepted Answer

Final Answer : D, Explanation :  To find the marginal product of the third worker, we need to find the additional output produced when the third worker is hired.When Caroline hires two workers, the total product is 50 dresses. When she hires three workers, the total product is 48 dresses. This means that the additional output (the marginal product) from hiring the third worker is:Marginal product of the third worker = Total product with three workers - Total product with two workers= 48 - 50= -2This shows that the marginal product of the third worker is negative, which means that the third worker is decreasing the total output.Similarly, to find the marginal product of the fourth worker, we need to find the additional output produced when the fourth worker is hired.When Caroline hires three workers, the total product is 48 dresses. When she hires four workers, the total product is 45 dresses. This means that the additional output (the marginal product) from hiring the fourth worker is:Marginal product of the fourth worker = Total product with four workers - Total product with three workers= 45 - 48= -3This shows that the marginal product of the fourth worker is also negative, which means that the fourth worker is decreasing the total output. Therefore, the correct choice is D, decreasing and negative.

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