Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Total product will continue to increase at an increasing rate
B
Total product will increase but at a decreasing rate
C
Total product will decrease
D
Total product will remain constant
Understanding the Answer
Let's break down why this is correct
Answer
Diminishing marginal returns is an important concept in economics that explains what happens when we add more of one input, like labor, while keeping another input, like machinery, fixed. Initially, when you add more workers to the same amount of machines, the total output or product increases as the workers can help each other. However, after a certain point, each new worker adds less and less to the total output. For example, if you have one machine and you keep adding workers, they will start to get in each other's way, and the extra product from each new worker will decrease. Eventually, adding more workers could even lead to a decrease in total output, showing that there is a limit to how much productivity can be gained from just adding more of one input.
Detailed Explanation
When you add more of a variable input, like workers, to a fixed input, like machines, total product goes up. Other options are incorrect because Some might think total product keeps increasing faster and faster; It's a common mistake to think total product will drop.
Key Concepts
total product
Topic
Diminishing Marginal Returns
Difficulty
easy level question
Cognitive Level
understand
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