Use the following for questions 37-43.
Exhibit: Total Product

-(Exhibit: Total Product) Between points A and B, which of the following is (are) true?
A) Total product is going down.
B) The marginal product of labor is rising.
C) The marginal product of labor is falling.
D) Only A and C are true.

Question

Use the following for questions 37-43.
Exhibit: Total Product
 
-(Exhibit: Total Product) Between points A and B, which of the following is (are) true?
A) Total product is going down. 
B) The marginal product of labor is rising. 
C) The marginal product of labor is falling. 
D) Only A and C are true.

Quizplus · Accepted Answer

Between points A and B, total product is increasing but at a decreasing rate, which means that the marginal product of labor is falling.

Use the Following for Questions 37-43