Use the Following Figure to Answer the Questions

question 107

Multiple Choice

Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor.
-When the labor input employed in production is between points O and C in Figure 7-2:

• A)average product reaches a minimum.
• B)marginal product reaches a maximum.
• C)marginal product is below average product.
• D)total product first increases at a decreasing rate and then increases at an increasing rate.

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