The diagram shows the short-run relationship between the total output of a firm and the quantity of labour.
- 17What can be concluded about the firm? A It is experiencing increasing returns to scale. B It is experiencing constant returns to scale. C The marginal physical product of capital is constant. D The marginal physical product of labour eventually diminishes.[1]
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Mark scheme
Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.
- [1] 17 D
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