Suppose the total output curve increases at an increasing rate for workers 1-50, increases at a decreasing rate from workers 51-101, and decreases beyond 101 workers. We would know that
A) marginal product is increasing from workers 1-50 and then becomes negative after worker 51.
B) marginal product is increasing from workers 1-50, decreasing after 51 workers, and becomes negative after the 101st worker.
C) marginal product is decreasing from workers 1-101, becoming negative at the 102nd worker.
D) marginal product is increasing from workers 1-50, constant from workers 51 to 101, and is decreasing after that.

Question

Quizplus · Accepted Answer

The increasing rate of total output from workers 1-50 implies that marginal product is increasing for those workers. The decreasing rate of increase from workers 51-101 implies that marginal product is decreasing, and beyond 101 workers, total output itself is decreasing, indicating that marginal product is negative. Therefore, marginal product is increasing from workers 1-50, decreasing after 51 workers, and becoming negative after the 101st worker.

Suppose the Total Output Curve Increases at an Increasing Rate