Figure: The Total Product (Figure: The Total Product) Look at the figure The Total Product.If after hiring L2 labor, the firm hires more labor, the total product will ________ because the marginal product of labor is _.
A)decrease; positive
B)increase; positive
C)decrease; negative
D)increase; negative

Question

Figure: The Total Product   (Figure: The Total Product) Look at the figure The Total Product.If after hiring L2 labor, the firm hires more labor, the total product will ________ because the marginal product of labor is _.
A)decrease; positive 
B)increase; positive 
C)decrease; negative 
D)increase; negative

Quizplus · Accepted Answer

According to the graph, the total product starts decreasing after L2 labor. This indicates that if the firm hires more labor, the total product will decrease. Moreover, the marginal product of labor is negative after L2 labor, which means that each additional unit of labor would diminish the total product, leading to a decrease in the total product. Therefore, the best choice is C.

Figure: the Total Product (Figure: the Total Product)