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 labor input employed in production is between points O and C in Figure 7-2:
A)average product reaches a minimum.
B)marginal product reaches a maximum.
C)marginal product is below average product.
D)total product first increases at a decreasing rate and then increases at an increasing rate.

Question

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 labor input employed in production is between points O and C in Figure 7-2:
A)average product reaches a minimum. 
B)marginal product reaches a maximum. 
C)marginal product is below average product. 
D)total product first increases at a decreasing rate and then increases at an increasing rate.

Quizplus · Accepted Answer

Marginal product reaches a maximum between points O and C, as this is typically where the additional output from each additional unit of labor is greatest before diminishing returns set in.

Use the Following Figure to Answer the Questions