7. On the figure below, indicate the level of labor where diminishing returns set in. Outp...
1. Diminishing Marginal Returns to labor: (2 points) Fill in the following table and determine where diminishing marginal returns set in. Why is it that there are diminishing marginal returns to labor? Explain. Number of Workers Total Output Marginal Product 0 0 1 4 2 10 3 18 4 28 5 36 6 42 7 44 8 43
According to the table below, at which level of input will diminishing average returns begin? Quantity of labor Total Product 50 130 230 au AWN 320 400 465 525 575 3 units of labor 5 units of labor 7 units of labor 4 units of labor
If a particular production process is subject to diminishing marginal returns to labor at every level of output, then at every level of output
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
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...
Which one of the following production functions exhibits diminishing returns to labor and increasing returns to capital? (K=capital, N=labor, A=constant) A. F(K,N) = (AK^1.4)(N^.9) B. F(K,N) = (AK^0.5)(N^0.7) C. F(K,N) = (AK^1.4)(N^1.3) D. F(K,N) = (AK^0.5)(N^1.5)
C. 1. Diminishing returns begin to occur with the hiring of which unit of labor? 2. Marginal product becomes negative with the hiring of which unit of labor?
7. If a continuous Total Product function exhibits diminishing returns at every level of input L>0, which of the following must be true? I. TP must eventually decrease II. AP is always falling III. TP is always getting flatter. a) Only I must be true b) Only I and II must be true C) Only I and III must be true d) Only Il and Ill must be true e) All 3 must be true
Does the following production function have diminishing marginal returns to labor in the SR? Q = 5LK1/2 yes no Cannot be determined from the information
The table below shows the daily production of sweatshirts at the CoolPrintz Screenprinting firm. Diminishing marginal returns to labor set in after the worker is hired. Workers Output 12 30 45 50 54 56 56 54 4 6 7 A. 2nd B. 3rd C. 5th D. 8th