a. Complete the following table.
b. Explain whether the production function satisfies the diminishing marginal returns property.
c. Draw the firm’s short-run production function and verify graphically that average product is falling when it is higher than the marginal product and that total product is falling when marginal product is negative.
a.
b.
The diminishing marginal return sets in when MPL of starts decreasing.
Yes, this production function satisfies the law of diminishing return because MPL curve is downward sloping.
c.
As it can be seen in the table and graph that APL is greater than MPL, so it is falling.
When MPL becomes negative, the TP is falling.
a. Complete the following table. b. Explain whether the production function satisfies the diminishing marginal returns...
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Assume labor is the only variable input and that the law of diminishing returns applies, explain the relationship between the marginal product of labor and marginal costs, and the average product of labor and average variable costs. Illustrate graphically these two sets of relationships, and illustrate graphically the short-run average total cost curve. Explain why, in the short-run, that average total cost is eventually increasing as production increases
8) The production function and the diminishing average product of labor a) Complete the following table for the following production function (round off to nearest whole number): # of workers 10 20 30 40 50 60 70 80 Grain output (kg) 632 894 1,095 1,265 1,414 1,549 1,673 1,789 Average product of labor (kg/worker) b) Given the above data graph the production function. Show how to represent the average product of labor on your graph. e) Explain what diminishing average...
28) The law of diminishing returns, as it applies to labor, means that A) the marginal product of labor will eventually be a horizontal line at zero. B) the average product of labor starts to decline before the marginal product of labor. C) total output eventually decreases. D) the average product of labor increases at a decreasing rate. E) the marginal product of labor eventually decreases as more labor is added with capital held fixed. 29) A firm's short-run labor...
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What is the difference between "diminishing marginal returns" and "diseconomies of scale"? a. Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable. b. Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is...
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