The total product curve:
Question options:
| a) | will be downward sloping if there are diminishing returns tothe variable input. |
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| b) | will become horizontal when the marginal product of thevariable input is constant. |
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| c) | will become flatter as output increases if there arediminishing returns to the variable input. |
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| d) | shows the relation between output and the quantity of a variableinput for varying levels of the fixed input. |
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When a firm has diminishing marginal returns:
Question options:
| a) | marginal product is always negative. |
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| b) | total product falls because marginal product is falling andpositive. |
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| c) | marginal product is falling but is likely to still bepositive. |
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Can anyone explain this? Thank you!
