Consider the following short run production information: Marginal Product Average Product of Labor Units of Total Labor Product of Labor 4 16 5 ? 120 30 The marginal product of the 5th unit of labor is equal to

using an isoquant/isocost diagram explain the difference between diminishing returns to a variable factor and decreasing returns to a scale

Subpart 4

Consider the production function of the firm below. Which of the following is NOT true? The marginal product of labor at B is 70 units. The total product is increasing as inputs to production increase. The marginal product of capital at point D is 50. The marginal products of both labor and capital are always increasing.

Consider this production function. Study hours 2. 4 10 11 12 14 15 or more 13 Grade 20 33 42 50 57 63 69 73 78 81 84 86 88 89 90 1007 90 - 80 70 60 S0 40 30 20 10 Hours of study per day Select one or more: a. The average product of labour is falling as hours of study increase. O b. The marginal product of labour is constant as hours of study increase. O c. The marginal product of labour is rising as hours of study increase. U d. The marginal product of labour is zero beyond 15 hours. Final grade 9-

Write out an example Cobb-Douglas production function. Derive the signsfor the relationship between labor and output and for marginal product oflabor and labor, holding other inputs fixed. Explain with economic intuition.

The Production Function for Wilson Company Economists at the Wilson Company are interested in developing a production function for fertilizer plants. They collected data on 15 different plants that produce fertilizer  PLANT         OUTPUT (TONS)                CAPITAL ($)               LABOUR (HOURS) 1                             605.3                                18,891                                700.2 2                             566.1                               19,201                                651.8 3                              647.1                               20,655                                822.9 4                              523.7                                15,082                               650.3 5                              712.3                                20,300                               859.0 6                              487.5                                16,079                               613.0 7…

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