ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The way total products change over time
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The way marginal product changes as variable inputs are added
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the way inputs change in response to business decisions
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the way output changes independent of input.
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Detailed explanation-1: -In the first stage of production, increasing returns, the marginal product of each new worker is increasing. In the second stage of production, diminishing returns, the marginal product is decreasing. In the third stage of production, negative returns, the marginal product is negative.
Detailed explanation-2: -PRODUCTION STAGES: The three stages of production are characterized by the slopes, shapes, and interrelationships of the total, marginal, and average product curves.
Detailed explanation-3: -The marginal product(MP) refers to the total output quantity generated by each extra input unit utilized in production. It is calculated by dividing the total product change by the change in the inputs used. The rise in the marginal returns means every additional variable input is more effective than the last input.
Detailed explanation-4: -Variable inputs are those inputs of production that a firm can use as per its requirement and make changes in it easily. For example, raw materials of production, labor, capital, etc.