Which of the follow statement is correct, assume constant return to scale Produc

Question

Which of the follow statement is correct, assume constant return to scale Production will only take place at the period when average product of each factor is decreasing Production will only take place at the period when marginal product of each factor is increasing Production will only take place at the period when marginal product of each factor is at its maximum Production will only take place at the period when average product of each factor is increasing Which of the following graphs best describes the change of total product as labor input increases, holding the sue of land constant (The horizontal axis is units of labor, the vertical axis is units of output)

Explanation / Answer

Production only tajes pkace ehen MP is increasing

When labor increases, production increases, but after a maximum level it decreases. B is answer

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