Suppose the Total Output Curve Increases at an Increasing Rate

question 261

Multiple Choice

Suppose the total output curve increases at an increasing rate for workers 1-50, increases at a decreasing rate from workers 51-101, and decreases beyond 101 workers. We would know that

• A) marginal product is increasing from workers 1-50 and then becomes negative after worker 51.
• B) marginal product is increasing from workers 1-50, decreasing after 51 workers, and becomes negative after the 101st worker.
• C) marginal product is decreasing from workers 1-101, becoming negative at the 102nd worker.
• D) marginal product is increasing from workers 1-50, constant from workers 51 to 101, and is decreasing after that.

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Definitions:

Net Income

Net income is the total amount of profit a company earns after subtracting all of its expenses, taxes, and costs from its total revenue.

Unlimited Liability

A legal structure in business where owners are personally liable for all the debts and obligations of the business.

Limited Life

A term that refers to the finite operational lifespan of an entity, asset, or agreement, after which it ceases to exist or operate.

Limited Liability

A legal structure that limits the amount of financial responsibility of the entity's owners to the amount they have invested.