Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor.
-In Figure 7-2,a firm would choose to operate _____ on the total product curve.
A)between O and A
B)at point E
C)between B and D
D)between D and E

Question

Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor. 
-In Figure 7-2,a firm would choose to operate _____ on the total product curve.
A)between O and A 
B)at point E 
C)between B and D 
D)between D and E

Quizplus · Accepted Answer

Between B and D on the total product curve, the firm is experiencing increasing marginal returns, meaning that each additional unit of input results in a larger increase in output. This is the most efficient range for production before diminishing returns set in.

Use the Following Figure to Answer the Questions