When the total product curve is drawn in a figure that measures employment along the horizontal axis, it is a graph that shows the
A) minimum output attainable for each quantity of labour employed.
B) maximum output attainable for each quantity of labour employed.
C) minimum cost of producing a given amount of output using different techniques.
D) maximum profit attainable for each unit of output sold per unit of labour employed.

Question

Quizplus · Accepted Answer

The total product curve shows the maximum output that can be produced with varying amounts of labor, assuming all other factors of production are held constant. It reflects the principle of increasing, then decreasing, marginal returns.

When the Total Product Curve Is Drawn in a Figure