When marginal product turns negative ______. *
a)total output will begin to fall
b)total output will begin to rise
c)total output will remain d)constant
e)none of these
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Diminishing returns occur when the marginal product of the variable input is negative. That is when a unit increase in the variable input causes total product to fall. At the point that diminishing returns begin the MPL is zero.
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When the marginal product turns negative total output will begin to fall (Option a).
- The marginal product is the change in the result of output when one more unit is added to the input.
- Total output is the sum total of all that the inputs produce. So the total output is affected by the marginal product.
- When the marginal product happens to be negative then it is inferred that the added unit of input has not increased the output and rather decreased it. The negative effect of the extra output causes the total output to fall.
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