Question Completion Status Marginal Product Average Product

Question Completion Status: Marginal Product Average Product a, Inputs of Labor Refer to the above diagram, where variable inputs of labor are being added to a constant amount of property resources. The total output of this firm will cease to expand: O if a labor force in excess of Q1 is employed. O if a labor force in excess of Q2 is employed. O if a labor force in excess of Q3 is employed. O only if the marginal product curve becomes negative at all levels of output.

Solution

Since total output increase until marginal products is positive, when marginal products is zero, the total output is maximum. When marginal products become negative, the total output stops increasing. As it can seen in the graph at Q3 TP stops increasing because at Q3 marginal products is zero.

It means if labour force is excess of the amount Q3, total output does not increase.

Hence option third is the correct answer.

Option third is: if labour force in excess of Q3 is employed.