In the third of the three ranges of production:
A) the total product curve has an increasing slope.
B) the marginal product curve has a positive slope.
C) the marginal product curve intersects the total product curve.
D) total product declines.

Question

Quizplus · Accepted Answer

In the third range of production, the total product curve still increases but at a decreasing rate, which means the slope of the curve is decreasing. This also implies that the marginal product curve has a negative slope and eventually intersects with the total product curve. As a result, the total product curve will start to decline after a certain point. Therefore, D is the correct choice as it states that total product declines in this range.

In the Third of the Three Ranges of Production