PRC-3 · Chapter 12 · Question 32 of 69
In the final stage (Stage III) of the Law of Variable Proportions, a factory becomes so overcrowded with workers that they actively disrupt the machines, causing total overall output to fall. In this stage, the Marginal Product (MP) is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Negative
Explanation
If the addition of a worker causes the total output of the factory to physically drop, that worker's marginal contribution is mathematically negative.
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