6. Assume that the short run marginal product curve is a smooth inverted U-shape

Question

6.   Assume that the short run marginal product curve is a smooth inverted U-shaped curve, when labor input increases, the corresponding total product curve has a(an) A.  U-shape because it will be concave first and then convex later. B.  reverse S-shape because it will be convex first and concave later. C.  S-shape because it will be convex first and concave later. D.  S-shape because it will be concave first and convex later. E.  reverse S-shape because it will be concave first and convex later. 6.   Assume that the short run marginal product curve is a smooth inverted U-shaped curve, when labor input increases, the corresponding total product curve has a(an) A.  U-shape because it will be concave first and then convex later. B.  reverse S-shape because it will be convex first and concave later. C.  S-shape because it will be convex first and concave later. D.  S-shape because it will be concave first and convex later. E.  reverse S-shape because it will be concave first and convex later.

Explanation / Answer

Option C is correct.

The total product first increases at an increasing rate, this is justified by the convex shale of the curve which is at the lower level of output and labour. Next, with more labour employed, the total product increases at decreasing rate, shown by concave curve. Giving it a shape of S like.

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