The total product curve is a graph that shows the
A)minimum cost of producing a given amount of output using a given technology.
B)maximum profit from each unit of output sold.
C)maximum output that a given quantity of labour can produce.
D)maximum output that can be produced as technology advances.
E)change in total product for a given change in marginal product.

Question

Quizplus · Accepted Answer

The total product curve shows the maximum output that a given quantity of labor can produce. It is a graphical representation of the relationship between the quantity of labor used and the total output produced. It illustrates the law of diminishing returns, which states that as more units of a variable input (labor) are added to a fixed input (such as capital), the marginal product of the variable input will eventually decrease.

The Total Product Curve Is a Graph That Shows the