Let f be a production function such that that, for a fixed k, the marginal product of labour starts out positive and at first increases, reaches a maximum, and then decreases to 0. Graph the marginal and average product of labour in this situation and choose which of the following are necessarily true about the average product? (Choose all that apply). (a) The average product of labour is constant. (b) The average. product of labour increases whenever the marginal product is positive. (c) The maximum of the average product is where marginal product equals the average product. (d) The average product first increases, then decrease towards 0. (e) The average product will be equal to 0 before the marginal product will be equal to 0.
Let f be a production function such that that, for a fixed k, the
marginal product of labour starts out positive and at first increases, reaches a maximum, and then decreases to 0. Graph the marginal and average product of labour in this situation and choose which of the following are necessarily true about the average product? (Choose all that apply).
(a) The average product of labour is constant.
(b) The average. product of labour increases whenever the marginal product is positive.
(c) The maximum of the average product is where marginal product equals the average product.
(d) The average product first increases, then decrease towards 0.
(e) The average product will be equal to 0 before the marginal product will be equal to 0.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
