77. Marginal product

A. diminishes at all levels of production.
B. may initially increase, then diminish, but never become negative.
C. may initially increase, then diminish, and ultimately become negative.
D. is always less than average product.

Question

77.  Marginal product

A. diminishes at all levels of production.
B. may initially increase, then diminish, but never become negative.
C. may initially increase, then diminish, and ultimately become negative.
D. is always less than average product.

BlackTom AI · Accepted Answer

Marginal product is the additional output obtained from adding one more unit of an input (for example, one more worker) while holding other inputs fixed.

1. Relevant knowledge points and concepts
- Marginal product (MP) = change in total product (ΔTP) / change in input (ΔL, usually 1). 
- Law of diminishing marginal returns: as successive units of a variable input are added to fixed inputs, marginal product eventually falls.
- Specialization can cause MP to rise initially; overcrowding or inefficiencies can make MP negative.
- Relationship to average product (AP): MP can be above or below AP; when MP > AP, AP rises; when MP < AP, AP falls.

2. Complete reasoning process step by step
- Initially, adding workers can increase efficiency (division of labor), so MP may rise.
- After a point, additional workers have less capital to work with, so MP diminishes.
- If too many workers crowd fixed capital, total output can fall, making MP negative.

3. Example with intermediate steps (illustrative calculation)
Suppose total product (TP) for workers L = 0,1,2,3,4,5 is TP = 0,5,12,18,20,18.
Compute MP = ΔTP:
- L=1: MP = 5 - 0 = 5
- L=2: MP = 12 - 5 = 7 (MP increased)
- L=3: MP = 18 - 12 = 6 (MP diminished)
- L=4: MP = 20 - 18 = 2 (further diminished)
- L=5: MP = 18 - 20 = -2 (MP became negative)

4. Why the correct answer is correct
Option C states MP "may initially increase, then diminish, and ultimately become negative." The example and economic theory show exactly this pattern: initial gains from specialization, diminishing returns later, and possible negative MP due to overcrowding.

5. Why other options are incorrect
- A ("diminishes at all levels"): incorrect because MP can rise at low levels due to specialization.
- B ("may initially increase, then diminish, but never become negative"): incorrect because overcrowding can make total output fall, producing negative MP.
- D ("is always less than average product"): incorrect because MP can exceed AP (raising AP) or be below AP; it is not always less.

6. Conclusion
Thus the correct choice is C, matching the provided answer.

77. Marginal product A. diminishes at all levels of production. B. may initially increase, then diminish, but never become negative. C. may initially increase, then diminish, and ultimately become negative. D. is always less than average product.Single choice

Similar Questions

What is the marginal product of the third worker (Angel)?

When there is a negative marginal product, it means that total product is rising at a slower rate.

What is the marginal product of the third worker (Angel)?

0 0 1 5 2 20 3 32 4 42 5 50 6 55 7 58 8 58 9 56 58. Refer to the table. With the addition of the second unit of input, the marginal product is A. 15 and the average product is 20. B. 25 and the average product is 10. C. 15 and the average product is 10. D. 10 and the average product is 15.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler