State the behavior of Marginal Physical Product, under Returns to a Factor.

Open in App

Solution

i. MPP Initially rises to its maximum

ii MPP then decreases (stays positive) to become zero

iii MPP becomes negative

Suggest Corrections

Similar questions

Q. Explain the changes that take place in total product and marginal product under increasing returns to a factor ?

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.

Level of factor employment:	1	2	3	4	5	6
Marginal Physical Product:	20	22	18	16	14	6

Total Physical Product when 3 factors are employed is -

Level of factor employment:	1	2	3	4	5	6
Marginal Physical Product:	20	22	18	16	14	6

Average Physical Product when 5 factors are employed is _______.

Q. Calculate average physical product and marginal physical product, given the following information about total physical product of a firm.

Employment of Variable Factor (Units)	Employment of Fixed Factor (Units)	Total Physical Product (Units)
$0$ $1$ $2$ $3$ $4$ $5$ $6$ $7$	$5$ $5$ $5$ $5$ $5$ $5$ $5$ $5$	$0$ $10$ $24$ $40$ $56$ $70$ $80$ $84$

Join BYJU'S Learning Program

State the behavior of Marginal Physical Product, under Returns to a Factor.

i. MPP Initially rises to its maximum ii MPP then decreases (stays positive) to become zero iii MPP becomes negative

i. MPP Initially rises to its maximum

ii MPP then decreases (stays positive) to become zero

iii MPP becomes negative