A total product curve whose slope is continually rising at an increasing rate:
A)indicates that an infinite amount of labor is needed to produce a given level of output.
B)does not reflect diminishing marginal returns.
C)does not reflect increasing marginal returns.
D)describes a production function where labor is the only input.

Question

Quizplus · Accepted Answer

A total product curve with a continually rising slope at an increasing rate indicates increasing marginal returns, meaning that each additional unit of labor is adding more to total output than the previous unit. This implies that the production function is not subject to diminishing marginal returns, which is characteristic of most production processes. However, this does not necessarily mean that an infinite amount of labor is needed to produce a given level of output or that labor is the only input.

A Total Product Curve Whose Slope Is Continually Rising at an Increasing