State whether true or false, and explain.

"If total product is increasing, marginal product must also be increasing."

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Solution

False.

Total product can increase even if marginal product is decreasing, but remains positive. This is the phase of diminishing returns to a factor. Total product will start falling only if marginal product becomes negative.

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Similar questions

State whether true or false, and explain.

"If average product is increasing, marginal product must be less than the average product."

State whether true or false, and explain.

"If marginal product is negative, average product must be negative."

State whether true or false, and explain

"Whenever marginal product is equal to average product, total product is at its maximum."

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.

Management can help in reducing costs and increasing productivity. State true or false.

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State whether true or false, and explain. "If total product is increasing, marginal product must also be increasing."

False. Total product can increase even if marginal product is decreasing, but remains positive. This is the phase of diminishing returns to a factor. Total product will start falling only if marginal product becomes negative.

State whether true or false, and explain.

"If total product is increasing, marginal product must also be increasing."

False.

Total product can increase even if marginal product is decreasing, but remains positive. This is the phase of diminishing returns to a factor. Total product will start falling only if marginal product becomes negative.