Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve therefore looks like:

Options:

'U' Shaped

Convex to Origin.

'L' Shaped.

Inverse 'U' Shaped.

Correct Answer:

Inverse 'U' Shaped.

Explanation:

The correct answer is Option (4) → Inverse 'U' Shaped.

According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve therefore, looks like an inverse ‘U’-shaped curve .