In a diagram below is shown the total product curve OA of labour. For it which of the following statements is true-

the MP of labour always rises
first rises and then falls
always declines
first falls and then rises

The correct answer is: B. first rises and then falls.

The marginal product of labor (MP) is

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the additional output produced by an additional unit of labor. In the diagram, the MP curve starts out positive and increasing, but eventually reaches a maximum and then begins to decline. This is because as more and more labor is added to a production process, each additional worker has less and less to do, so their output eventually declines.

Option A is incorrect because the MP of labor does not always rise. In fact, it eventually declines.

Option C is incorrect because the MP of labor does not always decline. In fact, it first rises and then declines.

Option D is incorrect because the MP of labor does not first fall and then rise. It first rises and then declines.

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