EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 8, Problem 3QR
To determine
Describe the role of diminishing marginal product in determining the ideal mix of labor and capital a firm should use.
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If marginal physical product is continually declining, what does marginal cost look like?
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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- Explain why the marginal cost of production must increased if the marginal product of the marginal resource is decreasing.arrow_forwardWhat explains the shape of the average and marginal cost curves? Is it linked to any production relationships?arrow_forwardHow does labor influence marginal product? There's the saying "the more the merrier," but is this always the case? Can you think of a scenario in which too much labor would decrease output? Share personal experiences where additional labor either helped or hurt productivity.arrow_forward
- What shapes would you generally expect a total product curve and a marginal product curve to have?arrow_forwardHow are economies of scale achieved in labor? Please answer in own wordarrow_forwardWhy might marginal product be increasing at lower levels of output and decreasing at higher levels of output?arrow_forward
- Among the three stages of production, until what point should one produce considering the law of diminishing marginal product?arrow_forwardA production function is represented by P=f(L), where L is labour. As input L increases, the total output will increase but what will happen to marginal product? Can marginal product be zero? if so, what it meanarrow_forwardHow would you derive marginal cost from total cost?arrow_forward
- Explain any assumptions and arguments we must use in order to conjecture that firms choose the production level that minimises their average cost under some reasonable conditions.arrow_forwardWhat is the difference between the labor intensive production and capital intensive production approach.arrow_forwardYou are the owner of a puppet manufacturing company. Suppose that labour is the only variable input to the production process. If the marginal cost of production is diminishing as more units of output are produced, what can you say about the marginal product of labour?arrow_forward
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