Note AcademyNote Academy
Start

Economics (AS & A Level) · Oct / Nov 2021 · Paper 33 · Question 16

9708Types of cost, revenue and profit, short-run and long-run production

As the number of workers employed by a firm increases, the marginal product of labour decreases but remains positive. What happens to the firm's total output?

  1. AIt stops increasing.
  2. BIt increases at a constant rate.
  3. CIt increases at a falling rate.
  4. DIt increases at a rising rate.

As printed in the paper

Show the answer

Correct answer: C. It increases at a falling rate.

Sit this whole paper →More on Types of cost, revenue and profit, short-run and long-run production

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.