The Relationship Between Labor Usage and Output at the Local

question 57

Multiple Choice

The relationship between labor usage and output at the local coffee shop is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. $\begin{array}{cc}\begin{array}{c}\text { Labor } \\ \underline {\text { Input }}\end{array} & \begin{array}{c}\text { Cups of } \\ \underline {\text { espresso }}\end{array} \\ 0 & \text { 0 } \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}$
The marginal product of the third worker is __________ than the marginal product of the second worker which means __________.

• A) greater;diminishing returns are absent
• B) less;diminishing returns are present
• C) neither greater nor less;the third worker will be hired
• D) less;the third worker will never be hired

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