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

Related MCQs

• 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?
• When price of a product falls, more of it is purchased because of
• When average product is at a maximum, marginal product is
• The sum of marginal propensity to consume plus marginal propensity to save must equal to:
• As a result of an increase in capital, ceteris paribus, ------ the marginal productivity of labour:
• The marginal productivity of labour:
• Marginal costs and average variable costs are equal when
• Whenever marginal product is declining with increasing use of an input,