Question

The following table shows how much output a firm can produce as it relates to the use of both capital K and labor L: KIL 2 40 60 75 85 90 3 4 65 85 100 110 115 20 70 90 105 115 120 40 2 3 4 75 90 100 105 65 70 Which of the following statements is true? O A. The marginal product of labor is decreasing, regardless of the level of capital B. The marginal product of labor only decreases when more than 75 units are produced O C. The marginal product of labor is always the same as the marginal product of capital D. None of the above

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans: The marginal product of labor is always the same as the marginal product of capital

Explanation:

If capital is kept constant and labor units are increased,he MP of labor is 20, 15, 10, & 5. Similarly, if labor is kept constant and capital units are increased,he MP of capital is 20, 15, 10, & 5.

The marginal product of labor is always the same as the marginal product of capital

Add a comment
Know the answer?
Add Answer to:
The following table shows how much output a firm can produce as it relates to the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT