WAEC Economics 2025 Objective — Question 21

Question 21 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.

When a firm increases the quantities of its variable factor given a fixed factor, the

A. marginal product of the variable factor will decrease continuously.
B. marginal product of the variable factor rises and later falls.Correct
C. total product will rise continuously.
D. average product will decline and later increase.

Explanation

This describes the law of diminishing returns: as more variable input is added to a fixed input, marginal product rises initially then eventually falls.

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