Advertisements
Advertisements
Question
When the Marginal Product turns negative, Total Product will ______.
Options
Fall
Rise
Remain constant
Be zero
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 is the law of variable proportions?
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
Bring out the Relationship among Total, Average and Marginal Products.
Which one of the following is NOT a ceteris paribus assumption of the Law of Supply?
At the point of inflexion, ______ is maximum.
Study the data given below and identify the laws followed in the production of A and B depicted in the Table I and Table II. Justify your answer with a reason for each.
| Table I | Table II | ||||
| Machines | Labour | Output of A (units) | Machines | Labour | Output of B (units) |
| 5 | 10 | 1000 | 5 | 10 | 400 |
| 5 | 11 | 1150 | 10 | 20 | 800 |
| 5 | 12 | 1310 | 15 | 30 | 1200 |
What are Average product?
What are Marginal product?
With the help of a suitable diagram, discuss the relationship between Average product and Marginal Product.
