Question

Q.17 of 51
Which of the following statements is true?
(1 marks)
Choose the correct answer:
After the inflection point of the production
function (.e. the point from where the TP curve
changes its shape), a greater use of the variable
input induces a reduction in the marginal product.
Before reaching the point of decreasing marginal
retums, the quantity of output obtained can
increase at an increasing rate.
The first stage corresponds to the range in which
the AP is increasing as a result of utilizing
increasing quantities of variable inputs.
All
the above.

Answer 1

$\huge\mathtt\blue{Question:}$

Which of the following statements is true? (1 marks) Choose the correct answer:

1. After the inflection point of the production function (i.e. the point from where the TP curve changes its shape), a greater use of the variable input induces a reduction in the marginal product.
2. Before reaching the point of decreasing marginal returns, the quantity of output obtained can increase at an increasing rate.
3. The first stage corresponds to the range in which the AP is increasing as a result of utilizing increasing quantities of variable inputs.
4. All of the above.

$\huge\mathtt\red{Answer:}$

All of the above

Refer to the attachment.

1. In the first attachment, after the point of inflection, in stage II MP is decreasing when the variable input is increasing. In the attachment, variable input is labour.
2. 'Before reaching the point of decreasing marginal returns' means before the point of inflexion. And TP increases at an increasing return in stage I.
3. In attachment 2, AP is increasing in the first stage. And more and more variable input is used.

Hope it helps : )