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Table 13-5
the Following Table Shows the Production and Costs

Question 223

Multiple Choice

Table 13-5
The following table shows the production and costs for the Wooden Chair Factory.


 Labor  (Number of  workers)   Capital  (Number of  machines)   Output  (Chairs  produced per  hour)   Marginal  Product of  Labor  (Chairs  produced per  hour)   Cost of  Workers  (Dollars)   Cost of  Machines  (Dollars  Total  Cost  (Dollars)  125221032204235525562707280\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of } \\\text { workers) }\end{array} & \begin{array} { c } \text { Capital } \\\text { (Number of } \\\text { machines) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Chairs } \\\text { produced per } \\\text { hour) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Product of } \\\text { Labor } \\\text { (Chairs } \\\text { produced per } \\\text { hour) }\end{array} & \begin{array} { c } \text { Cost of } \\\text { Workers } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Cost of } \\\text { Machines } \\\text { (Dollars }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost } \\\text { (Dollars) }\end{array} \\\hline 1 & 2 & 5 & & & & \\\hline 2 & 2 & 10 & & & & \\\hline 3 & 2 & 20 & & & & \\\hline 4 & 2 & 35 & & & & \\\hline 5 & 2 & 55 & & & & \\\hline 6 & 2 & 70 & & & & \\\hline 7 & 2 & 80 & & & & \\\hline\end{array}
-Refer to Table 13-5. The Wooden Chair Factory experiences diminishing marginal product of labor with the addition of which worker?


A) The third worker
B) The fourth worker
C) The fifth worker
D) The sixth worker

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