CSS Solved Papers
Physics Chemistry

CSS :: Scale Of Production and Laws of Returns

  When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product (MP) of labour falls but the average product (AP) of labour rises. This can be explained by the factors that:
[A]. The MP of labour is greater than AP of labour[B]. The additional workers are more efficient
[C]. MP and AP always moves in opposite directions[D]. (b) and (c)

Answer: Option A

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