The total product curve may initially show output increasing at an increasing rate as more labour is hired because of the:

Related MCQs

• The law of diminishing marginal returns is encountered as increasing amounts of labour are hired because:
• If labour is the only variable resource and its marginal physical product falls as more workers are hired:
• When both average and total product are greater than zero, and marginal product equals average product, then total product:
• The marginal product of labor curve shows the change in total product resulting from:
• Whenever marginal product is increasing with increasing use of an input,
• The reason the marginal cost curve eventually increases as output increases for the typical firm is because:
• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• When the total product curve is falling, the:
• If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:
• Production possibilities curve does not show: