In the graph, TP is still rising at 6 workers even though MP is falling. Why? Marginal and average product curves. MP is 10, 14, 15, 13, 8, 6, 4, 0 and −7 for the 1st to 9th labourer. AP is 10, 12, 13, 13, 12, 11, 10, 8.75 and 7. The curves meet at K, where 4 labourers give MP = AP = 13.

Production Function: TP, MP and AP · Question 18 of 62

In the graph, TP is still rising at 6 workers even though MP is falling.

Question 18

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In the graph, TP is still rising at 6 workers even though MP is falling. Why?

Marginal and average product curves. MP is 10, 14, 15, 13, 8, 6, 4, 0 and −7 for the 1st to 9th labourer. AP is 10, 12, 13, 13, 12, 11, 10, 8.75 and 7. The curves meet at K, where 4 labourers give MP = AP = 13.

AP is risingCorrect answerYour answerMP is still positive (6), so each worker still adds to outputCorrect answerYour answerMP is negativeCorrect answerYour answercapital has increasedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

TP rises whenever MP is positive, however small.
A falling MP only means TP rises more slowly.

Concept: Falling MP, rising TP
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsTotal, marginal and average product

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In the graph, TP is still rising at 6 workers even though MP is falling.

Question 18

Explanation