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Basic Question 1 of 13
Refer to the graph below. At point A, ______
B. marginal product is maximum.
C. marginal product is zero.
A. marginal product is minimum.
B. marginal product is maximum.
C. marginal product is zero.
User Contributed Comments 5
| User | Comment |
|---|---|
| rana1970 | had the tangentail slope at point A and upward been more than that of the points below A, marginal product would have been greater(i.e TP would have been increasing at increasing rate), but here situation is reverse. |
| ljamieson | inflection point between convex/concave |
| Htoon | Marginal products are products that are produced by one additional worker. Suppose, now, one worker can produce 5 units. When the firm hire one more worker, the firm can produce 12 units. The difference of 2 units is marginal products. |
| bundy | Slope...if starts to decrease you have reached the point of maximum marginal output |
| Huricane74 | Thank you @LJamieson, @Bundy |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.