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Homework answers / question archive / Which of the following is never negative? a

Which of the following is never negative? a

Accounting

Which of the following is never negative?

a. slope of the isocost lines

b. the marginal rate of technical substitution

c. marginal product

d. production elasticity

e. average product

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The correct answer is e,average product.

Explanation:

The average product curve increases initially and then diminishes. Although the average product keeps decreasing, it never hits nil, nor is negative. The average product curve is hump shaped deals with rising and falling of marginal returns.