Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 14, Problem 2MCQ
To determine
Choose the correct answer from the following option: The average product of labor increases as output increases if ____.
- Marginal product exceeds average product
- Average product exceeds marginal product
- Total product increases
- Marginal product increases
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Students have asked these similar questions
b. Explain the relationship between total product, marginal product, and averageproduct.
Why does the marginal cost of production typically increase as the amount of output produced increases?
a.A fixed factor of production causes diminishing marginal product
b.Increasing returns to scale
c.There are no fixed factors of production
d.Decreasing returns to scale
Total product begins to fall when:
a. average product is negative
b. marginal product is maximized
c. marginal product is zero
d. average product is below zero
Chapter 14 Solutions
Foundations of Economics (8th Edition)
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Similar questions
- What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?arrow_forwardWhen the average product is increasing, marginal product: a. equals average product b. is increasing c. exceeds average productd. is decreasing e. is less than average product.arrow_forwardUNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2arrow_forward
- When the marginal product of labor equals the average product of labor, then a. the marginal product is still increasing. b. the marginal product is maximized. c. the average product is still increasing. d. the average product is maximized.arrow_forwardIn a short-run production process, a diminishing marginal product of labor explains why marginal cos is? 1.A negative and falling 2.zero 3.positive but falling D. positive and risingarrow_forwardWhen the total product curve is falling, the: a. average product of labor is increasing. b. marginal product of labor is zero. c. average product of labor must be negative. d. marginal product of labor is negative.arrow_forward
- Name Time Started Time Finished Variable input (Labor) 0 10 20 1. Define the following terms: production function, average product, marginal product, law of diminishing marginal returns, constant returns to scale, increasing returns to scale and decreasing returns to scale. 2. Complete the table below: 30 40 50 60 THEORY OF PRODUCTION Activity No. 6 70 80 90 100 110 120 130 140 Total Product 0 250 600 1200 1900 2700 3600 4400 5000 5425 5700 5825 5900 Course & Year Date Performed 5925 5875 Average Product Marginal Product With the values in the above table, plot Total Product (TP), Average Product (AP) and Marginal Product (MP) in a single graph with units of product at the vertical axis and labor units at the horizontal axis. You can also use two (2)graphs (TP above AP and MP curves) Label your graphs properly. Use graphing paper for your curves if you do not have computer/laptop access but insert graph is recommended. 3. Describe the shapes of the curves drawn. What relationship can…arrow_forwardInputs of labor Total Product Average Product Marginal Product 1 15 2 34 3 51 65 74 80 83 8. 82 Requirements: 1. Calculate the marginal and average products. 2. The plot in a graph the marginal products. 3. Explain why marginal product first rise, then decline and ultimately becomes negative.arrow_forwardShow and explain the relationship between total product, average product and marginal product.arrow_forward
- Explain the Law diminishing return. Calculate the Marginal Product and Average product in the given table. No.of workers Total Product Marginal Product Average Product 0 0 - 1 80 2 170 3 270 4 368 5 430 6 480 7 504 8 504 9 495 10 470arrow_forwardWhich of the following is not possible? When the total product is decreasing, marginal product is greater than the average product. Total product increases when average product decreases. O When the marginal product is less than the average product, the total product is increasing. OWhen the marginal product reaches the maximum, total product continues to increase.arrow_forwardQuestion 9 When Marginal Product of Labor intersects the Average product of labor, minimum average product of labor obtains at the intersection. True Falsearrow_forward
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