If Mp Is Positive And Falling Tp Is

If Mp Is Positive And Falling Tp Is



(a) Positive values only (b) Negative values only (c) Both positive as well as negative values (d) Neither positive nor negative values. Ans: A Q.19 Which of the following is correct ? (a) When MP is positive and falling , TP rises at a decreasing rate. (b) When MP is rising, TP rises at an increasing rate. (c) When MP is negative and falling …


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Factor inputs work best in specific proportions to each other. As you begin production, 1 unit of labor mixed with however much available capital is less productive than, say, 2 units of labor with the same capital. At very low levels of productio…


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The stage II is characterized by decreasing AP and a decreasing MP , but with MP not negative. Thus, the efficiency of the variable factor is falling , while the efficiency of b, the fixed factor, is increasing, since the TP with b 1 continues to increase.


When TP starts declining, the MP curve becomes negative. It is only when the total product is zero that the average product also becomes zero. The rising, the falling and the negative phases of the total, marginal and average products are in fact the different stages of the law of variable proportions which are discussed below.


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