Use the following for questions 37-43.
Exhibit: Total Product

-(Exhibit: Total Product) Hiring L₂ units of labor results in total product attaining a _______ and the marginal product of labor _______ .
A) minimum; being equal to zero.
B) maximum; being equal to zero.
C) maximum; being positive
D) minimum; falling, but still being positive.

Question

Use the following for questions 37-43.
Exhibit: Total Product
 
-(Exhibit: Total Product) Hiring L₂ units of labor results in total product attaining a _______ and the marginal product of labor _______ .
A) minimum; being equal to zero. 
B) maximum; being equal to zero. 
C) maximum; being positive 
D) minimum; falling, but still being positive.

Quizplus · Accepted Answer

Hiring L₂ units of labor results in total product reaching its maximum point, at which the marginal product of labor becomes zero, indicating that additional units of labor do not increase total output.

Use the Following for Questions 37-43