The following graph shows a variety of possible production functions (PFs) in an imaginary economy, assuming constant levels of human capital and technology. Because human capital and technology remain unchanged, each of these production functions represents a different level of the capital stock. Fill in the table with the curve that corresponds to each of the capital stock levels described. Levels of Capital Stock This corresponds to which curve? (PF1, PF2, PF3) Highest Middle Lowest Fill in the blank: The slope of the line connecting the origin to point B is __________ (options: flatter, steeper) than the slope of the line connecting the origin to point A, because the slope of such a line is equivalent to ___________ (options: productivity, the marginal physical product of labor, marginal cost).
The following graph shows a variety of possible production functions (PFs) in an imaginary economy, assuming constant levels of human capital and technology. Because human capital and technology remain unchanged, each of these production functions represents a different level of the capital stock. Fill in the table with the curve that corresponds to each of the capital stock levels described. Levels of Capital Stock This corresponds to which curve? (PF1, PF2, PF3) Highest Middle Lowest Fill in the blank: The slope of the line connecting the origin to point B is __________ (options: flatter, steeper) than the slope of the line connecting the origin to point A, because the slope of such a line is equivalent to ___________ (options: productivity, the marginal physical product of labor, marginal cost).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following graph shows a variety of possible production functions (PFs) in an imaginary economy, assuming constant levels of human capital and technology.
Because human capital and technology remain unchanged, each of these production functions represents a different level of the capital stock.
Fill in the table with the curve that corresponds to each of the capital stock levels described.
| Levels of Capital Stock | This corresponds to which curve? (PF1, PF2, PF3) |
| Highest | |
| Middle | |
| Lowest |
Fill in the blank:
The slope of the line connecting the origin to point B is __________ (options: flatter, steeper) than the slope of the line connecting the origin to point A, because the slope of such a line is equivalent to ___________ (options: productivity, the marginal physical product of labor, marginal cost).
Transcribed Image Text:PF
PF2
PF,
3
Hours of Labor
Output
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