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Use the Following Figure to Answer the Questions

Question 99

Multiple Choice

Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor. Use the following figure to answer the questions : Figure 7-2 shows the total product curve for different levels of a variable input,labor.   -When the quantity of labor employed lies between points D and E in Figure 7-2: A) marginal product reaches a maximum and then declines. B) marginal product reaches a maximum and then becomes negative. C) total product is increasing at a decreasing rate. D) total product is decreasing.
-When the quantity of labor employed lies between points D and E in Figure 7-2:


A) marginal product reaches a maximum and then declines.
B) marginal product reaches a maximum and then becomes negative.
C) total product is increasing at a decreasing rate.
D) total product is decreasing.

Correct Answer:

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