Question

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 (APL) = Total Product of Labour/L) for a particular quantity of the labour input (L) corresponds to the --- on the total product of labour (TPL) curve. Oslope of a tangent line on the TPL at a particular level of L area above the TPL between a labour value of O and the particular level of L area under the TPL between a labour value of O and the particular level of L O slope of a ray from the origin (0,0) to a point on the TPL at a particular level of L Along an output expansion path, if all inputs are increased by multiplying by a constant factor "lamda" and output increases by a multiple of the same factor, the production function is said to exhibit -- Ex:If lamda equals two, then doubling all inputs (ex. L and K) would cause output to double also. constant returns to scale increasing returns to scale diminishing returns to labour diminishing returns to scale Suppose each additional grade (marginal grade) is higher than the last one, this means that your average grade is -------------- This should help you to understand the marginal product of labour (MPL) and average product of labour curve shapes (see ch. 6) where you can consider your grade to be output. constant increasing either increasing, decreasing, or constant. decreasing

Answer 1

Q1.

The marginal product of labor at a given level of L corresponds to the change in the total product for a unit change in labor input. This is denoted graphically by the slope of the tangent curve at the given level of L

Ans: slope of tangent line at a particular level of L

Q2.

Average product of labor is graphically denoted by the slope of the line drawn from origin to the total product curve at a given level of L

Ans: slope of a ray from the origin (0, 0) to the point on the TPL at a particular level of L

Q3.

If the proportion of output increases by the same rate at which all the inputs employes has increased, then the firm is said to be exhibiting constant returns to scale.

Ans: constant returns to scale

Q4.

When each marginal grade is higher than the last one, then the average grade is continuously increasing. This is because the additional grade of each student added is higher than the previous average and hence the average grdae would be rising

Ans: increasing