A negative value for the marginal physical product would indicate that
A) the company has not yet reached the point of saturation.
B) total output increased by a significant amount.
C) total output decreased when the extra unit of the variable input was added.
D) total output increased, but the increase was very small.

Question

Quizplus · Accepted Answer

A negative value for the marginal physical product indicates that the addition of one more unit of the variable input results in a decrease in total output. Therefore, choice C is the best answer. Choices A, B, and D are incorrect because they describe situations where total output either increased or remained the same.

A Negative Value for the Marginal Physical Product Would Indicate