Between points A and B, which of the following is (are) true? Answer Total produ

Question

Between points A and B, which of the following is (are) true? Answer Total product is going down. The marginal product of labor is rising. The marginal product of labor is falling. Only A and C are true.
After hiring L2 units of labor and producing at point B on the total product curve, hiring more units of labor would result in which of the following statements being true? Answer The marginal product of labor is rising. The marginal product of labor is negative. Total product is negative. Average product is negative.

In the region from O to A, output per period is _______ and long-run average cost is _______ . Answer
decreasing; increasing
increasing; decreasing
increasing; increasing
increasing; remaining the same

Explanation / Answer

Between points A and B, Total product is rising with the incorporation of more and more units of labour, Hence, b) The marginal product of labor is rising. After point b, hiring more units of labor will result in decline in total product, Hence, b) The marginal product of labor is negative. From 0 to A, output is increasing, long run average cost is decreasing

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