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 different phases of change in the total product according to the Law of Variable Proportions. Use diagram
What are the different phases in the Law of Variable Proportions in terms of Total Product ? Give reasons behind each phase. Use diagram.
Explain the law of variable proportions with the help of a diagram.
Who said, that one of the key of an entrepreneur is “uncertainty bearing”.
Product obtained from additional factors of production is termed as
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?
At the point of inflexion, ______ is maximum.
With the help of a diagram, explain the relationship between Average Product and Total Product under the Law of Variable Proportions.
What is marginal product?
With the help of a suitable diagram, discuss the relationship between Average product and Marginal Product.
Which stage of the Law of Variable proportions will be the best for the producer? Explain with a reason.
What happens to marginal product after a certain point, if more and more labour is added to fixed land?
What is the formula for calculating Average Product?
Which stage is shown when total production drops and marginal product becomes negative?
