In the third phase of the law of variable proportions,

MP is risingCorrect answerYour answerTP rises at an increasing rateCorrect answerYour answerMP is negative and TP fallsCorrect answerYour answerAP is risingCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Too much of the variable input crowds the fixed input, so an extra unit lowers output.
No rational firm hires into this phase.

Concept: Third phase
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe law of variable proportions

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Ten questions from Production Function: TP, MP and AP, at your own pace.

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Ten questions from Production Function: TP, MP and AP, at your own pace.

Practise this chapter All 62 questions in Production Function: TP, MP and AP Revise the notes for Production Function: TP, MP and AP

In the third phase of the law of variable proportions,

Explanation