When a firm's total-product curve is increasing at a decreasing rate
A)average product is zero.
B)marginal product is positive but declining.
C)the marginal-product curve lies below the average-product curve.
D)marginal product is negative and decreasing.
E)average product is falling.

Question

Quizplus · Accepted Answer

When the total-product curve is increasing at a decreasing rate, it means that the marginal product is still positive but declining. This is because the additional output being produced by each additional unit of input is still positive but not as much as before. Thus, the best choice is B.

When a Firm's Total-Product Curve Is Increasing at a Decreasing