In a typical short-run production function, before diminishing returns set in, the slope of the total product curve
A)is decreasing.
B)is increasing.
C)rises and then falls before diminishing returns sets in.
D)falls and then rises before diminishing returns sets in.

Question

Quizplus · Accepted Answer

In the short run, before diminishing returns set in, the slope of the total product curve is increasing. This is because as more units of variable input (labor) are added to a fixed amount of capital, output increases at an increasing rate due to specialization and division of labor.

In a Typical Short-Run Production Function, Before Diminishing Returns Set