passwella.
Menu

WAEC Economics 2025 Question 7

Question 7

Theory of Production

When a firm increases the quantities of its variable factor given a fixed factor, the

  1. A.marginal product of the variable factor rises and later falls.
  2. B.marginal product of the variable factor will decrease continuously.
  3. C.average product will decline and later increase.
  4. D.total product will rise continuously.
Show the answer and explanation

Answer: A (marginal product of the variable factor rises and later falls.)

Explanation

This is the law of variable proportions: MP rises at first, then falls.