Output per worker (S, thousands)Production lunction (after225technological progreProduction function1520 30Capital equipment per worker (S, thousands)The figure shows an economy's production function before and after a technological progress.Based on this information, which of the following statements is correct?O The average product of capital at Ais 250,000/70,000 -3.57O The marginal product of capital atA is (85.000 - 70.000)/ (300,000 - 250,000) = 0.30O The particular shape of the production function indicates diminishing marginal product of capitalAs a result of a technological progress, the marginal product of capital rises but the average product of capital remains constant for a given level of capital per worker

Diminishing marginal product of capital states that as more and more capital is used for production…

Answered: Output per worker (S, thousands)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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3. We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. Are the following statements then True or False? Explain.The marginal product of labor becomes negative when the slope of the production frontier begins to get shallower as we move toward more labor input.
as Figure 11-1 D Real GDP per hour worked, YIL v $40 IC 8 T 1 60 Production function, Production function, Production function, Capital per hour worked, KIL Refer to Figure 11-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from Production function 1 to Production function 2 from Production function 2 to Production function 1. from Production function 1 to Production function 3. up along any of the production functions
Question 10 Figure 1 below shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. Number of Cars Repaired 0 2 4 5 Number of Mechanics The production process depicted on the graph exhibits marginal product of labor. O increasing O constant O diminishing 18 17 15 12 8 00
hand written asap please do it correctly will upvote..don't answer after 5.25 pm
1. Do the following production functions exhibit increasing, constant of decreasing returns to scale in K and L? Explain/interpret your answer. (a) Y = KL (b) Y = KL (c) Y = K³L¹
Suppose the inputs of labour and capital each increase by 8% and output also increases by 8%. The production function exhibits_ returns to scale technology. a. Constant O b. Increasing O c. Decreasing O d. Zero
Refer to the information provided in Figure 7.9 below to answer the questions that follow. Units of capital 80 60 A 0 Answer: B Diff: 3 Topic: Appendix: Isoquants and Isocosts Skill: Conceptual 197 Figure 7.9 6) Refer to Figure 7.9. If the price of capital is $25, then along isocost line AB total cost is A) $1200. B) $1500. C) $2000. D) indeterminate from this information since the price of labor is not given. Answer: B Diff: 2 Topic: Appendix: Isoquants and Isocosts Skill: Analytic B D E 60 80 120 Units of labor 7) Refer to Figure 7.9. The firm is currently along isocost CD. If the price of capital is $25, then the price of labor is A) $1. B) $25. C) $80. D) indeterminate from the information given. B) $24. 8) Refer to Figure 7.9. The firm is currently along isocost CE. If the price of capital is $24, then the price of labor is A) $16. C) $80. D) $120. Answer: A
The figure shows the total product curve for different levels of a variable input, labor. Output Total Product curve АВ с D E Quantity of Labor In the figure, at point C O average product equals marginal product O marginal product is at a maximum total product is increasing at an increasing rate average product is declining but positive
4
An economist fits the following production function to data from Australia and New Zealand, Y = AK" L1-« She estimate that for Australia, a = = 0.7. She estimates that for New Zealand, a = = 0.2 Based on this information, which of the following statements is most likely to be correct. There is not enough information to comment on the relative capital intensities Production wilI be relatively more capital intensive in New Zealand than in Australia Production will be relatively more capital intensive in Australia than in New Zealand Production will be equally as capital intensive in each country since they both experience constant returns to scale

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