Use the following for questions 44-50.

-Marginal product:
A) can never increase.
B) can only be falling.
C) can be less than zero.
D) never equals average product.

Question

Use the following for questions 44-50.
 
-Marginal product:
A) can never increase. 
B) can only be falling. 
C) can be less than zero. 
D) never equals average product.

Quizplus · Accepted Answer

Marginal product can be negative when the addition of one more unit of input leads to a decrease in output, such as when too many workers are added to a fixed amount of capital. It can also be zero when the addition of one more unit of input leads to no change in output. Marginal product can initially increase but then eventually decrease as diminishing marginal returns set in. Marginal product does not necessarily equal average product.

Use the Following for Questions 44-50