Marginal product:A) diminishes at all levels of production.B) may initially increase,then diminish,but never become negative.C) may initially increase,then diminish,and ultimately become negative.D) is always less than average product.

Question

Marginal product:A)  diminishes at all levels of production.B)  may initially increase,then diminish,but never become negative.C)  may initially increase,then diminish,and ultimately become negative.D)  is always less than average product.

Angie Fernandez · Accepted Answer

Final Answer : C, Explanation :  Marginal product may initially increase due to specialization and efficient use of resources, but eventually, diminishing returns set in and the marginal product starts to decline. Eventually, if more units of the variable input are added, the marginal product may become negative, indicating that the additional input is actually reducing output.

Marginal product:

A) diminishes at all levels of production.
B) may initially increase,then diminish,but never become negative.
C) may initially increase,then diminish,and ultimately become negative.
D) is always less than average product.

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