Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2
-When the labor input employed in production is between points O and C in Figure 7-2:
A)average product reaches a minimum.
B)marginal product reaches a maximum.
C)marginal product is below average product.
D)total product first increases at a decreasing rate and then increases at an increasing rate.

Question

Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2 
-When the labor input employed in production is between points O and C in Figure 7-2:
A)average product reaches a minimum. 
B)marginal product reaches a maximum. 
C)marginal product is below average product. 
D)total product first increases at a decreasing rate and then increases at an increasing rate.

Quizplus · Accepted Answer

When labor input is between points O and C, the marginal product reaches a maximum, indicating the most efficient use of additional labor before diminishing returns set in.

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