A firm's total product curve shows that at first it has
A) economies of scale and then diseconomies of scale.
B) diseconomies of scale and then economies of scale.
C) increasing marginal returns and then diminishing marginal returns.
D) diminishing marginal returns and then increasing marginal returns.

Question

Quizplus · Accepted Answer

The total product curve initially shows increasing marginal returns as more inputs lead to proportionally more output. Eventually, it shows diminishing marginal returns as additional inputs contribute less to output.

A Firm's Total Product Curve Shows That at First It