Advertisements
Advertisements
Question
When the Marginal Product turns negative, Total Product will ______.
Options
Fall
Rise
Remain constant
Be zero
Advertisements
Solution
When the Marginal Product turns negative, Total Product will Fall.
Explanation:
In the third stage of the law of variable proportion, often known as the law of negative returns to factor. It states that if the Marginal Product (MP) is negative, it suggests a negative net addition to total product. This will result in a decrease in Total Product (TP).
APPEARS IN
RELATED QUESTIONS
State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour
Explain the law of variable proportions with the help of a diagram.
Formula for calculating AP is
Who said, that one of the key of an entrepreneur is “uncertainty bearing”.
The short-run production is studied through
Mention the economies reaped from inside the firm
Product obtained from additional factors of production is termed as
Modern economists have propounded the law of
Define Marginal Product of a factor.
Which one of the following is NOT a ceteris paribus assumption of the Law of Supply?
Why is the AVC curve U-shaped?
What is marginal product?
Which stage of the Law of Variable proportions will be the best for the producer? Explain with a reason.
Which term describes the extra output from adding one more unit of labour in production?
Which stage is shown when total production drops and marginal product becomes negative?
Why should businesses study the law of variable proportions?
