Question

2 As labor increases in the short run what happens to the marginal productivity of labor?

2 As labor increases in the short run what happens to the marginal productivity of labor?

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

The marginal productivity of labor refers to the additional output produced by an additional unit of labor. The marginal productivity of labor curve is bell-shaped and it first goes up in the short run, reaches a maximum and then declines. So, as labor increases, marginal productivity of labor increases in the short run.

Add a comment
Know the answer?
Add Answer to:
2 As labor increases in the short run what happens to the marginal productivity of labor?
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
  • 1. The below question shows Short-Run productivity data for a small busin Units of Labor Total...

    1. The below question shows Short-Run productivity data for a small busin Units of Labor Total Product Marginal Product Average Product O 75 JUNHO 104 16 126 119 104 a. Complete the table above by calculating Marginal Product and Average Product. 120 SANNE 15 b. Explain why, in the short run, Marginal Product first rises, then declines, and ultimately becomes negative. c. What happens to Marginal Cost when Marginal Product is rising? When Marginal Product is falling? c. What happens...

  • Marginal Productivity and Marginal Cost Crepes Work hours Mworkers Or the change in Work hours MC...

    Marginal Productivity and Marginal Cost Crepes Work hours Mworkers Or the change in Work hours MC (at wage of $20/hour), inputs at $5 MPL  amount that one worker would produce 1 0.05 2 0.2 3 0.45 4 0.8 5 1.25 6 1.8 7 2.45 8 3.2 9 4.05 10 5 In the short-run, how can you increase production?   Fill in the table.  After the first dinner, what happens to the time needed for each additional crepe? Why? What happens to the marginal...

  • Saved The law of diminishing marginal productivity explains why short-run production costs increase directly with a...

    Saved The law of diminishing marginal productivity explains why short-run production costs increase directly with a firm's level of output True or False True False

  • write down the slolow equation and explain what happens in the short and long run if...

    write down the slolow equation and explain what happens in the short and long run if the saving rate increases?

  • 2. Suppose a firm's short run production function is q = 600L-L. a. At what level...

    2. Suppose a firm's short run production function is q = 600L-L. a. At what level of labor does the firm maximize output (total product)? What is the value of total product at this point? b. Does this frim experience increasing marginal product of labor. If so, over what range of output? What happens to total product over this range? c. Over what range of output does this firm experience diminishing marginal product of labor? What is the value of...

  • According to the IS-LM model, what happens in the short run to the interest rate, income,...

    According to the IS-LM model, what happens in the short run to the interest rate, income, consumption, and investment under the following circumstances? a. The central bank increases the money supply. b. The government increases government purchases. c. The government increases taxes. d. The government increases government purchases and taxes by equal amounts.

  • Holding other things constant, diminishing marginal productivity happens

    Holding other things constant, diminishing marginal productivity happens

  • The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...

    The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...

  • 1 Which key principal explains the positively sloped portion of the short-run marginal cost curve? 2....

    1 Which key principal explains the positively sloped portion of the short-run marginal cost curve? 2. What is happening to marginal cost as marginal product is rising? 3. Comment on the following statement: Assume a firm’s short-run marginal cost is less than the short-run average cost. If the firm increases its output level, will the firm’s average cost increase or decrease? Explain relative to marginal cost.

  • According to the IS-LM model, what happens in the short run to the interest rate, income,...

    According to the IS-LM model, what happens in the short run to the interest rate, income, consumption, and investment under the following circumstances? Be sure your answer includes an appropriate graph. The government increases taxes. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The price level decreases. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The central bank increases the money supply. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The government decreases government purchases. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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