Which of the following statements correctly describes a total product curve?
A) Points above the total produce curve are efficient.
B) The curve shows that output always increases as labor employed increases.
C) The curve separates attainable outputs from unattainable outputs.
D) The curve shows minimum levels of output.
E) The curve first falls, reaches a minimum, and then rises.

Question

Quizplus · Accepted Answer

The total product curve represents the maximum output that a firm can produce with varying amounts of a single input, typically labor, while holding other inputs constant. It separates attainable outputs (those on or below the curve) from unattainable outputs (those above the curve), given the current technology and resources.

Which of the Following Statements Correctly Describes a Total Product