explan why the marginal product of labour initially
increases as more workers are hired and then eventually begins to
fall
Marginal product of labor is the extra units of output produced with increase in the amount of labor units. Normally, when all other factors of production are held constant, the marginal product of labor should increase with the increase of labor units, in what is known as the increase in marginal returns. This will go on until either capital or materials begin to reduce, and the marginal product of labor would begin to reduce at this point regardless of any increase in labor units, in what is known as diminishing marginal returns. Any further increases in labor will result in negative marginal returns in what is known as negative marginal returns.
This is basically due to law of diminishing marginal productivity.
explan why the marginal product of labour initially increases as more workers are hired and then...
Question 7 If the marginal product of labor for a firm decreases as more workers are hired, we know that there are still gains from specialization left to be exploited. the marginal cost of producing output is constant. all workers are paid the same wage. the gains from specialization are exhausted. the marginal cost of producing output is decreasing. Previous Next No new data to save. Last checked at 1:31pm Submit Q d) Prtscn Home FE 8
The data below show the relationship between number of workers hired and cost and revenue for a small competite farm in Alberta. a.) Calculate the marginal product of labour (MPL), value of marginal product of labour (VMPL), and marginal profit (MP) when the farm hires 1st, 2nd, 3rd, and 4th workers. b) If the farm decides to maximize its profit, how many workers will hire? Explain. c.) At what point do diminishing returns set in for the farm? Explain. d.)...
For a production function with a diminishing, but positive, marginal product of labor: A. Output increases at an increasing rate as more workers are employed B. Output increases at a decreasing rate as more workers are employed. C. Output declines as more workers are employed. D. The effects on marginal product are unknown.
please I need to help me with. C and D questions Workers Total Marginal Value of Product Product Marginal Product 14 60 70 A-Complete the marginal product and the value of marginal product for the Table above, assuming the market price for the good is $2. B-According to the marginal product theory of labor, if the equilibrium wage is $36 how many workers should be hired. Justify your answer with support from the marginal product theory of labor. C-According to...
Table 13-1 Number of Workers Total Output Marginal Product 140 6. Refer to Table 13-1. What is total output when 2 workers are hired? a. 15 b. 45 c. 75 d. 120 et de 7. Refer to Figure 13-2. If the figure represented production at a cookie factory, the factory would be experiencing a. diminishing marginal product of workers b. diminishing marginal cost of cookie production c. decreasing cost of cookie production d. decreasing output of cookies. Wose Jan started...
Complete the table. The price of output is $10.(1 point) Units of Total Product Marginal Product Marginal Revenue Labor from labor from Labor Product from Labor 0 10 20 2 80 150 120 90 80 | 40 10 20 11 5 How many workers should this firm hire if the price of labor cost is $400? Write the rule you used to determine the number of workers. (2 points) b. Why does marginal product eventually fall? (1 point) c. Illustrate...
The tendancy for the_ _to eventually decrease as more of the varialble factor (labour) is employed, CP, is critical to understanding the law of diminishing marginal returns Select one: A. total product O B. average product of labour O C. average total cost O D.marginal product of labour O E. marginal cost
The marginal product of labour (MPL) at a particular labour input level (L) corresponds to the __ on the total product of labour (TPL) curve. O area under the curve between 0 and a particular level of L area above the curve between 0 and a particular level of L slope of the ray from the (0,0) origin to the particular level of L slope of a tangent line at the particular level of L The average product of labour...
Ceteris paribus, when ticket prices fall: Total revenue product increases. Marginal revenue product decreases. Marginal revenue product increases. Marginal revenue product is unaffected.
7. If marginal product of labor is increasing as more labor is hired, that implies average product o labor is_(Only circle the correct answer) a) Increasing. b) Decreasing c) Maximurm d) Any of the above. e) None of above Only 8. If marginal cost is increasing as more quantity is produced, average cost is circle the correct answer) a) Increasing. b) Decreasing c) Minimum d) Any of the above. e) None of above