Carefully explain why the marginal product of labor first rises and then falls as the use...
Question 1: Explain marginal product and the connection to labor Mathematically use the marginal product to show a reduction in the change in output Described the connection between marginal product and marginal cost Solved for marginal cost using the production function or marginal product equation Used the rules about the long run to explain why the firm has increasing or decreasing returns to scale
Suppose that the marginal product of labor falls from 21 units of output to as the amount of labor employed increases by 1. Which of the following is TRUE? O The coefficient of price elasticity of demand is 1. Total revenue is at a minimum, and the additional worker should be laid off. Total product cannot be increased further with additional workers. The marginal revenue product is at a maximum
(micro economics) Explain why marginal product first increases and then decreases, i.e., explain the law of diminishing product.
Which of the following statements is false? a. When the marginal product of labor is increasing, marginal cost is also increasing. b. The average fixed cost curve is downward sloping and approaches the horizontal axis as output increases. c. The marginal cost curve intersects the average variable cost curve at the minimum point of the average variable cost curved. d. When the marginal cost is greater than the average total cost, the average total cost must be increasing. please explain...
Assuming that labor is the only variable input in the short run, draw (and label) a typically shaped marginal product curve for labor. Explain why the curve looks like this. Identify the point where the Law of Diminishing Returns sets in. Explain why we expect this to occur. Identify the three stages of production.
If labor productivity increases, which of the following could happen? 1. employment falls 2. GDP rises 3. the hours of employment per worker falls 4. leisure time increases 5. any of the above
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...
a) Why do we assume diminishing marginal product of labor (MPL)? Does the following data on a firm's production support this assumption? Assume the wage is AED 100 and the price of output is AED 10. How many workers will the firm hire? Show graphically. b) What is the marginal cost (MC) of output? Are MPL and MC related? How many units of output will the firm produce? Calculate or show graphically, Labor Total Product 25 00
please explain why each answer choice is correct or incorrect 5. Suppose the marginal product of labor is 6 and the marginal product of capital is 3. If the wage rate is $4 and the price of capital is $3, then in order to minimize costs the firm should use a. more capital and less labor. b. more labor and less capital. c. more capital and labor. d. none of the statements associated with this question are correct.
QUESTION 4 The slope of an isocost line shows: the ratio of the marginal revenue product of the inputs. O the ratio of marginal product of the inputs. the marginal rate of technical substitution. the ratio of the input prices. the output elasticity of production. QUESTION 5 If the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor, then in order to minimize costs the firm should use less capital and...