Question 1
POST_UTME_ACHIEVERS_UNIVERSITY
•
2022
•
ECONOMICS
•
objective
U\sing the concept of returns to scale, explain why a firm's production function is typically represented by a decrea\sing marginal product of labor curve.
Answer Options
Correct Answer
A.
The law of diminishing returns states that as the quantity of a variable input increases, while holding other inputs cons\tant, the marginal product of that input will eventually decrease.
B.
The production function is typically represented by a decrea\sing marginal product of labor curve because the marginal product of labor decreases as the quantity of labor increases.
C.
The firm's production function is typically represented by a decrea\sing marginal product of labor curve because the marginal product of labor increases as the quantity of labor increases.
D.
The production function is typically represented by a decrea\sing marginal product of labor curve because the marginal product of labor remains cons\tant as the quantity of labor increases.
Correct Answer
A
Correct Option:
The law of diminishing returns states that as the quantity of a variable input increases, while holding other inputs cons\tant, the marginal product of that input will eventually decrease.
About This Question
This is
Post Utme Achievers University
2022
Economics
Question 1.
It is one of the
objective
questions from the
2022
Post Utme Achievers University
Economics
examination.