Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2
-Let point A be the inflection point.When the quantity of labor employed is between A and D in Figure 7-2:
A)marginal product is negative.
B)marginal product is decreasing.
C)average product is increasing.
D)marginal product is increasing at a decreasing rate.

Question

Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2 
-Let point A be the inflection point.When the quantity of labor employed is between A and D in Figure 7-2:
A)marginal product is negative. 
B)marginal product is decreasing. 
C)average product is increasing. 
D)marginal product is increasing at a decreasing rate.

Quizplus · Accepted Answer

At point A, the total product curve reaches its maximum and starts to increase at a decreasing rate. Between point A and point D, the slope of the total product curve is decreasing, indicating that marginal product is also decreasing. Therefore, the correct choice is B. Average product can increase or decrease depending on the steepness of the slope of the total product curve. The information given in the question is not sufficient to determine whether average product is increasing or decreasing. Choice A is incorrect because marginal product is positive between point A and point D. Choice D is incorrect because marginal product is decreasing, not increasing, at this range of labor input.

Figure 7-2 Shows the Total Product Curve for Different Levels