Total output may continue to rise even though marginal physical product is negative.
Answer the following statement true (T) or false (F)
False
Marginal physical product (MPP) is the change in total output that results from employing one more unit of input. As long as MPP is positive, a firm can add to its total output by employing the worker. If MPP is negative, total output will fall.
You might also like to view...
Mail-in ballots are designed to:
A. increase your ability to fulfill your civic duty. B. increase utility derived from voting. C. decrease the costs associated with voting. D. increase the accuracy voting process.
By 2006, 20 percent of the mortgage market consisted of:
A. subprime loans, while 80 percent were still regular prime mortgages. B. prime loans, and an overwhelming 80 percent had become subprime mortgages. C. securitized loans, and the rest were backed by the government. D. individual mortgage loans, and an overwhelming 80 percent had become securitized loans.
Are business inventory changes always planned? Give an example to support your argument
Anna enters the workforce after being unemployed for a year. How would this be shown on her consumption function?
A. Movement down the consumption function B. Shift upward of the function C. Shift downward of the function D. Movement up along the consumption function