Question

Marginal product _____________________________.

a) diminishes at all levels of production.
b) may initially increase, then diminish, but never become negative.
c) may initially increase, then diminish, and ultimately become negative.
d) is always less than average product.

Answer 1

c) may initially increase, then diminish, and ultimately become negative.

Step-by-step explanation:

Marginal product is defined as the change in total number of units with respect to change in number of inputs.

As with each additional unit of input with time the change in output decreases, that is no additional input will be able to produce same number or more in number of output as it did initially.

As with passage of time, and increase in production, extra inputs are required in order to create same change in output.

Therefore, correct option is

Statement C