Answer to Question #81207 in Microeconomics for Sammy

Question

From the dozen seeds you planted in a small flower bed in front of your house, ten of them germinated and grew into plants. Liking how they look, you planted another dozen seeds in the same bed. This time, only seven of the seeds grew into plants.
i) What is the marginal product of From the dozen seeds you planted in a small flower bed in front of your house, ten of them germinated and grew into plants. Liking how they look, you planted another dozen seeds in the same bed. This time, only seven of the seeds grew into plants. a) What is the marginal product of the first planting? The second planting?first planting? The second planting?
Comparing the two values of the marginal product exemplifies which economic property?

Answer 1

i) What is the marginal product of From the dozen seeds you planted in a small flower bed in front of your house, ten of them germinated and grew into plants.
the marginal product is 10

a) What is the marginal product of the first planting?
the marginal product is 10

The second planting?
the marginal product is 7

first planting?
the marginal product is 10

The second planting?
the marginal product is 7

Comparing the two values of the marginal product exemplifies which economic property?
As we can see, the amount of the plants is decreasing. Economic property is the property of diminishing returns. The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower incremental per-unit returns.