Question 24
Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure output, in this case articles as in the production function of a newspaper; the graph of the production function, for the given level of capital K fixed, is composed of two line segments; the first goes from the origin to the point (10,30); the second, starting from 10 on, is a horizontal line; it is also shown that the production for five units of labor is 15).
Can we say that the production function satisfies the law of decreasing marginal returns of labor?
True
False
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