Question

What can a firm do to increase productivity in the short run once its marginal product is zero?

Answer 1

Answer:

  Decrease the quantity of the input

Step-by-step explanation:

The general assumption is that productivity is a curve that is concave downward, Hence marginal product is decreasing until it reaches zero. The way to increase it is to reduce the input quantity to a value below the point where the curve reaches zero marginal product.