Draw a production function that exhibits diminishing marginal product of labor. Draw the associated total cost curve. (In both cases, be sure to label the axes) Explain the shapes of the two curves you have drawn.

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

When Marginal Product of Labor intersects the Average product of labor, minimum average product of labor obtains at the intersection. True False

Explain why this statement is true or false: "If the labor cost per table is $20 and the material cost per table is $30, the short run average cost per table is $50."

Fill in the space (d) in the table below associated with the firm William Perry, Inc., that delivers refrigerators in the Chicago area, using the two inputs of labor and trucks. Number of Amount of Trucks Labor 2 2 2 2 2 2 2 0 1 2 3456 Total Output 0 75 (c) 380 (f) Average Product of Labor (a) (b) 100 (d) (e) 75 Marginal Product of Labor 100 50 (g) 0

Consider a short run production function q=5L+K, using L units of labour and K units of capital. Compute the marginal product of labour.                                      2. Does the production function exhibit decreasing, increasing or constant returns to scale?