Which of the following statement (s) is/are correct? Statement 1: Average and marginal products are often referred to as average and marginal returns, respectively, to the variable input. Statement 2:Since inputs cannot take negative values, marginal product is undefined at zero level of input employment. |
Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. None of the given statement is correct. |
Both statements are correct. |
The correct answer is option 3: Both statements are correct. Statement 1: Average and marginal products are often referred to as average and marginal returns, respectively, to the variable input. This is correct. Statement 2:Since inputs cannot take negative values, marginal product is undefined at zero level of input employment. This is correct. |