A restaurant employs 10 workers and has one oven. The firm hires an 11th worker. The week after, it hires a 12th worker. We expect the marginal productivity of the 12th worker to be ____ than the 11th worker because of _____ Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer a lower; falling wages. b lower, diminishing returns. c higher, increased productivity. d higher; firms only hiring the best workers.
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Marginal productivity refers to the additional output generated by employing one more unit of a factor of production, in this case, a worker. It's important to grasp that in many scenarios, as more units of a factor are employed, the additional output each new Show more…
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