If the Marginal Product of an Input Is Negative, the Total

question 42

True/False

If the marginal product of an input is negative, the total product must also be negative.

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Definitions:

Price Taker

An economic term for a market participant that accepts the prevailing prices without influencing them.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Cost

The cost added by producing one additional unit of a product or service.

Output

The aggregate output of products or services generated by a corporation, sector, or economic system.