31. Production Function

Which stage of the production graph represents the point at which the total product is maximized?

• STAGE I

• STAGE II

• STAGE III

• None of the above

What does the curve labeled 'Total Product' represent in the production graph?

• The total output produced by the quantity of labor

• The additional output produced by the last unit of labor

• The output per unit of labor

• The cost of labor

At which stage of the production graph is the marginal product decreasing but still positive?

• STAGE I

• STAGE II

• STAGE III

• Marginal product is not decreasing in any stage

What does the curve labeled 'Average Product' represent in the production graph?

• The total output produced by the quantity of labor

• The additional output produced by the last unit of labor

• The output per unit of labor

• The cost of labor

During which stage of the production graph is the average product at its highest?

• At the beginning of STAGE I

• At the end of STAGE I

• At the beginning of STAGE II

• At the end of STAGE II

What are inputs in the context of the production function?

• The profit earned from selling products

• The resources used to make outputs

• The total output or quantity produced

• The additional output generated by additional inputs

What is the Marginal Product (MP) in the production function?

• The total output or quantity produced

• The output per unit of input

• The additional output generated by additional inputs

• The average output per unit of input

How is Average Product (AP) calculated in the production function?

• AP = Total Product / Units of Labor

• AP = Change in Total Product / Change in Inputs

• AP = Total Product / Change in Inputs

• AP = Change in Total Product / Units of Labor

What does the Law of Diminishing Marginal Returns state?

• The additional output produced from each additional worker will increase indefinitely

• The additional output produced from each additional worker will remain constant

• The additional output produced from each additional worker will eventually fall

• The additional output produced from each additional worker will have no effect on total output

During which stage of returns does the Marginal Product (MP) start to fall?

• Stage I: Increasing Marginal Returns

• Stage II: Decreasing Marginal Returns

• Stage III: Negative Marginal Returns

• MP does not fall in any stage