Why does mariginal revenue product curve is invesrsed u shaped?
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marginal product curve is inversly u shaped because the per unit product decreases if more variable resources are put
u can say it is like disguised unemployment
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According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve in the input-output plane, therefore, looks like an inverse 'U'-shaped curve. ... Now as we increase the amount of input, the MP rises.
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