Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 25, Problem 5SPPA
To determine

To explain:

The way saving and investment in capital affect the productivity of labor, the reason for a rise in diminishing return with an example and graph of the productivity curve.

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What is one negative aspect of technology on productivity?         Technology allows for more products to be made in a shorter amount of time.         Technology allows companies to reduce the cost of making products.         Technology allows for more efficient ways to produce goods. This may lead to the elimination of jobs.         Technology allows for workers to work from home, which leads to fewer call-offs due to illness, inclement weather, or childcare-related issues.
Is it possible to increase the labor productivity in a given production process which exhibits diminishing returns to labor? If so, how? Explain with a graph
Draw the total physical product curve on graph below. . Beyond what number of workers do diminishing returns set in? Fill in the table on the previous page to show the values of APP and MPP in columns (3) and  (4) respectively. (Remember that the MPP values should be between each unit of labour.)   Draw the APP and MPP curves on the graph
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