Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

When a firm's workforce expands, the marginal product of labour falls, although it stays above zero. What is the effect on the firm's total output?

  • AIt stops increasing.
  • BIt increases at a constant rate.
  • CIt increases at a falling rate.
  • DIt increases at a rising rate.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI