https://www.methad Test.aspx?testld-11 Chloe Husemoen 9615 1 Quiz: The Key Princ
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Question
https://www.methad Test.aspx?testld-11 Chloe Husemoen 9615 1 Quiz: The Key Principles of Economics Quiz This Question 1 p This Test: 10 pts Xena has a small copy shop with one copying machinc. Xena hires a worker, who increases output by 500 pages (froem 0 to 500). She add's a second worker, who increases output by only 300 pages (from $00 to 800). lfshe added athid worker, holding the n mber ofcop sfiled, her output would increase by fewer thanpages. udy Moc tion Tool Ener your answer in the answer o MacBook Air 3 5 6 8
Explanation / Answer
In this case, law of diminishing marginal returns is applicable, because the addition of a second worker has resulted in a lower increase in output (Increase = 300 pages) than the increase from addition of the first worker (Increase = 500 pages).
Therefore, when a third worker is added, output will increase at a lower rate, that is, the incree in number of pages will be less than 300 pages.
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