Question

A restauranteur spends $61 on labor and materials to produce 8 meals . By increasing these cost to $78 , he can produce 14 meals . By increasing cost to $95 , he can produce 20 meals . In terms of capital and labor , he has _____ .
A. increasing marginal returns
B. Negative marginal returns
C.decreasing marginal returns
D . Constant marginal returns

Answer 1

Answer:

negative marginal returns

Explanation:

A restaurateur spends $61 on labor and materials to produce 8 meals. By increasing these costs to $78, he can produce 14 meals. By increasing costs to $95, he can produce 20 meals. In terms of capital and labor, he has _____.

 

decreasing marginal returns

 

constant marginal returns

 

[negative marginal returns ]

 

increasing marginal returns

Answer 2

He has to have negative marginal returns. I hope this helps :)