Diminishing returns* characterize all stages of production. eventually occur in all short-run production situations. are always associated with declining average product in the short-run. exist in the short run, because as additional units of an input are hired, the firm has to accept less satisfactory units.
Diminishing returns*
characterize all stages of production.
eventually occur in all short-run production situations.
are always associated with declining average product in the short-run.
exist in the short run, because as additional units of an input are hired, the firm has to accept less satisfactory units.
Total product curve in the first stage of production shows that it is increasing at an increasing rate because*
the marginal product is positive and increasing.
the marginal product is positive and decreasing.
the marginal product is negative.
the marginal product is zero.
A negative MP*
is consistent with a falling TP.
is associated with a negative AP.
may be consistent with rising or falling TP.
indicates that TP is increasing at a decreasing rate.
If the average output per worker in a firm is 7 units per hour, then the average output will rise as a result of hiring another worker if*
the marginal worker produces 7 units.
more workers are hired.
the marginal output of the next worker exceeds 7.
the last worker produced less than 7 units.
the MC is rising.
MP is equal to AP.
the MC must be falling.
MC is minimum
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