Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2
-In Figure 7-2,marginal product reaches a maximum at point _____.
A)A
B)B
C)C

Question

Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2 
-In Figure 7-2,marginal product reaches a maximum at point _____.
A)A 
B)B 
C)C

Quizplus · Accepted Answer

Marginal product reaches its maximum at the point where total product curve is at its steepest point, which is point B in this case. After this point, marginal product decreases due to the law of diminishing returns. Therefore, point B represents the optimal level of the variable input, labor.

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