Question 44
MediumOriginal questionAssertion (A): Diminishing marginal product sets in because the variable input becomes less skilled.
Reason (R): The law assumes all units of the variable input are identical.
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A is false: the workers are assumed equally skilled; MP falls because the fixed input is spread thinner.
R is true and is why skill cannot be the reason.
- Concept
- Not lower skill
- Typical timeTypical
- 70 s
- Your timeYours
- —
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Ten questions from Production Function: TP, MP and AP, at your own pace.