Exhibit 7.1

-Refer to Exhibit 7.1,which shows the total product and marginal product produced by a firm.Between three and seven workers,_____
A)marginal product is rising and total product increases by increasing amounts.
B)marginal product is falling but still positive, and total product increases by decreasing amounts.
C)marginal product equals zero and total product is at a maximum.
D)marginal product is negative and total product is falling.
E)marginal product is negative and total product is rising.

Question

Exhibit 7.1
 
-Refer to Exhibit 7.1,which shows the total product and marginal product produced by a firm.Between three and seven workers,_____
A)marginal product is rising and total product increases by increasing amounts. 
B)marginal product is falling but still positive, and total product increases by decreasing amounts. 
C)marginal product equals zero and total product is at a maximum. 
D)marginal product is negative and total product is falling. 
E)marginal product is negative and total product is rising.

Quizplus · Accepted Answer

Between three and seven workers, the marginal product is falling but still positive, indicating that each additional worker is adding less to total output than the previous worker. However, total product is still increasing, but by decreasing amounts, indicating that there are diminishing returns to labor.

Exhibit 7.1 -Refer to Exhibit 7.1,which Shows the Total Product and Marginal