In the short run, when the total product decreases and the marginal product becomes negative, it is known as ___________.

stage of negative returns

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stage of diminishing returns

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stage of increasing returns

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stage of constant returns

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Solution

The correct option is A stage of negative returns
Since the total product is falling by hiring more workers it is described as a state of negative returns. Average cost is steeply rising and marginal product is negative. The area beyond point B in the figure represents the stage of negative returns

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Q. When total product decreases and marginal product becomes negative, it is known as __________.

Q. In the short run, when total product to increases at a diminishing rate, it is known as _____________.

Complete the following table:

$\begin{matrix} Output units & Average fixed cost (Rs) & Marginal cost (Rs) & Average variable cost (Rs) & Average cost (Rs) 1 & 60 & 20 & - & - 2 & - & - & 19 & - 3 & 20 & - & 18 & - 4 & - & 18 & - & - 5 & 12 & - & - & 31 \end{matrix}$

State whether the following statements are true or false. Give reasons for your answer: a. Under diminishing returns to a factor marginal product and total product both increase at a diminishing rate. b. When marginal cost rises, average cost also rises. c. Marginal revenue can never be negative.

Giving reasons, state whether the following statements are true or false:
(i) Average product will increase only when marginal product increases.
(ii) Under diminishing returns to a factor, total product continues to increase until marginal product reaches zero.

Q. Fill in the blanks with appropriate alternatives given in the bracket:

1. _________________ refers to want satisfying power of a commodity. (Usefulness/ Utility/ Satisfaction/ Happieness)

2. Marginal utility diminishes, as consumption of commodity ________. (increases/ decreases/ remains constant/ become zero)

3. _________________ utility is the utility derived from the last unit of the commodity consumed. (Average/ Total/ Marginal/ Zero)

4. When MU is ______________ TU decreases. (positive/ negative/ zero/ high)

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In the short run, when the total product decreases and the marginal product becomes negative, it is known as ___________.

The correct option is A stage of negative returnsSince the total product is falling by hiring more workers it is described as a state of negative returns. Average cost is steeply rising and marginal product is negative. The area beyond point B in the figure represents the stage of negative returns

The correct option is A stage of negative returns
Since the total product is falling by hiring more workers it is described as a state of negative returns. Average cost is steeply rising and marginal product is negative. The area beyond point B in the figure represents the stage of negative returns