Answered: How does the marginal product curve…

Business

Economics

How does the marginal product curve behave when there are diminishing returns to a factor. Give reason also.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Lesson 7- Production Question 6

A: Answer = The missing value is 5 The Function is MPL = 5L-0.5Explanation:Answer =…

Q: Explain why the fixed cost has no influence at all on marginal cost.

A: In the short run, a firm will have two types of cost: fixed cost and variable cost. Total variable…

Q: draw a diagram showing the marginal cost curve and average total cost for a typical business firm.…

A: The total cost curve of the firm indicates the total cost incurred for the firm for producing the…

Q: The Acme Anvil Company's output is given by the Cobb-Douglas Production function P = 60L²/3K²/3,…

A: We are going to use lagrange maximisation technique to answer this question.

Q: Consider a firm uses only labor as a variable factor of production in the short run, with the help…

A: Profit Optimization:Profit optimization refers to the process of maximizing the profitability of a…

Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily…

A: The marginal product is characterized as the additional result that outcomes from adding one unit of…

Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation

A: The figure provided shows the total product curve for different levels of a variable input,…

Q: Give two example of fixed cost

A: Cost is the total expenditure incurred by a producer in producing a good or services. Cost has two…

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: The cost-minimizing amount of labor refers to the level of employment where a firm achieves its…

Q: The following table gives total output or total product as a func- tion of labor units used. LABOR…

A: Given Labor Total Output Marginal Output 0 0 0 1 5 5 2 9 4 3 12 3 4 14 2 5 15 1

Q: Complete the following table, which shows the amount of ore produced (measured in tons) when various…

A: Total product is the total amount manufactured per a set of resources, average product is the…

Q: Grease Tech produces oil changes. The production of oil changes relies on both capital (K) and labor…

A: Marginal Product of capital is the additional output that is produced by hiring an additional unit…

Q: Select all that apply A production function can include many inputs. Which of the following are the…

A: The inputs such as capital, labor and land are used to produce and output in the market is known as…

Q: When analyzing isoquants, if the marginal product of all inputs double, how would that change the…

A: Isoquants are the curve that depicts a various mix of labor (l) and capital (k) that can be used to…

Q: depending on the stages of production(increasing returns, diminishing returns, negative returns) can…

A: Solution: Law of variable proportion: It refers to the increase in quantity of only one input…

Q: 3) What is the Marginal product of Labor in the production function Q=2K^(1/3) L^(1/3) if Kis fixed…

A: Marginal product is the change in Total product due to an additional labor hired.m=> MP = Change…

Q: Consider a firm that produces car repairs. All inputs are fixed except the number of workers hired…

A: Marginal Product = Change in Total Product / Change in Number of Workers The marginal product of…

Q: How are economies of scale achieved in labor? Please answer in own word

A: Companies take pleasure in economies of scale as their producing becomes a lot of productive.…

Q: 1) Suppose we have the following SR production function: Q=4Ls Calculate the marginal product of…

A: Production function : Q = 4L0.5 Marginal product refers to the additional unit produced by adding…

Q: Explain a firm’s production function. Include in your answer how time influences the production…

A: Production in economics refers to the act of producing goods and services by combining together…

Q: 1)Suppose that labor is the only variable input to the production process. If the marginal cost of…

A: The marginal product of labor refers to the change in the total product with an addition of an…

Q: 1. Assume that a firm has the following production function: q = L0.50.6 d. Determine, both, the…

A: The production function is the equation describing the relationship between the quantities of…

Q: How does labor influence marginal product? There's the saying "the more the merrier," but is this…

A: Marginal Product of labor increases with decreasing rate. Marginal Product of Labor(MPL) is a change…

Q: The resource requirement function tells us the minimum amount of labor is needed to produce any…

A: The production function provides the combinations of factor inputs that can most efficiently get…

Q: A firm has the production function q = K0.25L0.25 , where K is capital, L is labor, and q is output.…

A: ***Since the third subpart of the question has not been mentioned clearly, so, the expert has solved…

Q: If marginal cost is less than average cost, average cost must fall when more units are produced.…

A: The marginal cost is change in total output when one additional unit of input is used.

Q: Say the marginal product of labour in production is 4 and the average product of labour is 7. Then,…

A: Marginal product of labor refers to an increase in total product because of addition of one more…

Q: Describe the relationship between the marginal product and the total product of a firm [

A: Total product can be defined as the total output produced by all the workers while the marginal…

Q: e. If their budget is $1200 then there is a constraint L+ K = 1200. Use Lagrange multipliers (2) to…

A: Total cost equation - L + K = 1200 ℒ= (120L0.7 K0.3)+λ (1200-L-K)∂ℒ∂L= 84L-0.3K0.3-λ=0…

Q: Con Co. produces a collectible card game. Currently, the price of capital is at $50 and the price of…

A: Marginal product of labor is the output produced when an additional unit of labor is hired in the…

Question

How does the marginal product curve behave when there are diminishing returns to a factor. Give reason also.

Expert Solution

Conceptual knowledge

# Marginal product is the additional value added to total product with one more unit of labor taken into use.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following describes the law of diminishing returns to labor? A. When one more worker got hired their marginal product was negative B. When one more worker got hired total product of the firm went down C. When one more worker got hired their marginal product was lower than the marginal product of the previous worker
What is the difference between the short run and long run for a firm? How does this relate to fixed and variable inputs?
Grease Tech produces oil changes. The production of oil changes reles on both capital (K) and labor (L) and is combined in the following production function F (K, L) = KILL Take the derivative of this production function with respect to capital. What is the marginal product of capital evaluated at (le. just plug in the numbers) 64 units of capital used and 16 units of labor?
Barb's Bakery employs three workers who produce 6 cakes per hour. After Barb hires a fourth worker, production increases to 12 cake per hour. Which of the following statements is TRUE? a. b. C. d. Because the marginal product of the fourth worker is greater than the average product of three workers, the average product must rise. Because the marginal product of the fourth worker is less than the average product of three workers, the average product must fall Because the marginal product of the fourth worker is less than the average product of three workers, the average product must rise. Because the marginal product of the fourth worker is greater than the average product of three workers, the average product must fall.
Give relation between average product and marginal product.
What is sunk cost? Provide an example of a sunk cost.Why are such costs irrelevant in making decision about future actions?
When Marginal Product of Labor intersects the Average product of labor, minimum average product of labor obtains at the intersection. True False
What is the law of diminishing returns? Explain why it applies only in the short run.
Please answer asap. I really need help.
Answer correctly with explanation A firm has the production function F(L, K) = 2 min{L, 10K7 . The current input level is (L, K) = (12, 1). What is the marginal product of capital? Select one: a. The marginal product of capital is not defined. b.4 c. 20 d. 2