If the marginal product curve is increasing from workers 1-89 and then decreases steadily, crossing the horizontal axis at 190 workers, we know that
A) the total output curve increases from workers 1-89, decreases from workers 90-189, and becomes 0 at the 190th worker.
B) the total output curve is increasing at an increasing rate from workers 1-89, then increases at a decreasing rate until the 190th worker, after which it decreases.
C) the total output curve is increasing throughout, although at an increasing rate for the first 190 workers and at a decreasing rate after the 190th worker.
D) diminishing marginal product sets in with the 190th worker.

Question

Quizplus · Accepted Answer

The marginal product curve represents the change in output that results from employing one more unit of labor. When the marginal product is increasing (workers 1-89), it means that each additional worker is adding more to the total output than the previous worker, indicating that the total output curve is increasing at an increasing rate. When the marginal product starts to decrease (after the 89th worker), each additional worker still contributes to the total output, but less so than the worker before, meaning the total output curve is still increasing but at a decreasing rate. The total output does not decrease after the 190th worker; it simply increases at a slower rate until the marginal product hits zero, at which point the total output reaches its maximum.

If the Marginal Product Curve Is Increasing from Workers 1-89