If labour is the only variable resource and its marginal physical product falls as more workers are hired:

Related MCQs

• The law of diminishing marginal returns is encountered as increasing amounts of labour are hired because:
• The total product curve may initially show output increasing at an increasing rate as more labour is hired because of the:
• When both average and total product are greater than zero, and marginal product equals average product, then total product:
• When marginal product reaches its maximum, what can be said of total product?
• The marginal product of labor curve shows the change in total product resulting from:
• When average product is at a maximum, marginal product is
• Marginal costs and average variable costs are equal when
• According to the principle of diminishing marginal physical productivity, in the short run
• Whenever marginal product is declining with increasing use of an input,
• Whenever marginal product is increasing with increasing use of an input,