The Figure 1 suggests that:Product32Variable inputFigure 1when marginal product is zero, total product is at a maximum.when marginal product lies above average product, average product is rising.when marginal product lies below average product, average product is falling.all the above hold true.

In economics, the marginal product of a factor of production is the change in output that results…

Answered: The Figure 1 suggests that: Product 3 2…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 9P

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Similar questions

What is the difference between a fixed input and a variable input?
A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What is a production function?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Are fixed costs also sunk costs? Explain.
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?
What is a long-run average cost curve?

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