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The following is a production function. Total output (Q) 50,000 45,000- 40,000- 35,000- 30,000- ง 25,000- 20,000- 15,000- 10,000- 5,000- 100 200 300 Units of labor (L) 400 Draw a graph of marginal product as a function of labor. 1.) Using the line drawing tool, graph the marginal product curve from 0 to 100 units of labor. Label this line 'MP Segment 1" 2.) Using the line drawing tool, graph the marginal product curve from 100 to 300 units of labor. Label this line 'MP Segment 2 Note: Carefully follow the instructions above and only draw the required objects. Does this graph exhibit diminishing returns? Explain your answer. A. Yes, it does exhibit diminishing returns, because the marginal product of labor decreases. OB. No, it does not exhibit diminishing returns, because the marginal product of labor is zero. OC. No, it does not exhibit diminishing returns, because the marginal product of labor is increasing. OD. Yes, it does exhibit diminishing returns, because the marginal product of labor is increasing. OE. Yes, it does exhibit diminishing returns, because the marginal product of labor is negative.

The following is a production function. Total output (Q) 50,000 45,000- 40,000- 35,000- 30,000- ง 25,000- 20,000- 15,000- 10,000- 5,000- 100 200 300 Units of labor (L) 400 Draw a graph of marginal product as a function of labor. 1.) Using the line drawing tool, graph the marginal product curve from 0 to 100 units of labor. Label this line 'MP Segment 1" 2.) Using the line drawing tool, graph the marginal product curve from 100 to 300 units of labor. Label this line 'MP Segment 2 Note: Carefully follow the instructions above and only draw the required objects. Does this graph exhibit diminishing returns? Explain your answer. A. Yes, it does exhibit diminishing returns, because the marginal product of labor decreases. OB. No, it does not exhibit diminishing returns, because the marginal product of labor is zero. OC. No, it does not exhibit diminishing returns, because the marginal product of labor is increasing. OD. Yes, it does exhibit diminishing returns, because the marginal product of labor is increasing. OE. Yes, it does exhibit diminishing returns, because the marginal product of labor is negative.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following is a production function. 50,000- 45,000- 40,000- Draw a graph of marginal product as a function of labor. 35,000- 30,000- 25,000- Total output (Q) 20,000- 15,000- 10,000 ng 5,000- 0+ 0 200 100 300 Units of labor (L) 400 L Q 1.) Using the line drawing tool, graph the marginal product curve from 0 to 100 units of labor. Label this line 'MP Segment 1" 2.) Using the line drawing tool, graph the marginal product curve from 100 to 300 units of labor. Label this line 'MPS Note: Carefully follow the instructions above and only draw the required objects. Does this graph exhibit diminishing returns? Explain your answer. ○ A. Yes, it does exhibit diminishing returns, because the marginal product of labor decreases. B. No, it does not exhibit diminishing returns, because the marginal product of labor is zero. ○ C. No, it does not exhibit diminishing returns, because the marginal product of labor is increasing. ○ D. Yes, it does exhibit diminishing returns, because the marginal product of labor is increasing. ○ E. Yes, it does exhibit diminishing returns, because the marginal product of labor is negative. Segment 2
Transcribed Image Text:The following is a production function. 50,000- 45,000- 40,000- Draw a graph of marginal product as a function of labor. 35,000- 30,000- 25,000- Total output (Q) 20,000- 15,000- 10,000 ng 5,000- 0+ 0 200 100 300 Units of labor (L) 400 L Q 1.) Using the line drawing tool, graph the marginal product curve from 0 to 100 units of labor. Label this line 'MP Segment 1" 2.) Using the line drawing tool, graph the marginal product curve from 100 to 300 units of labor. Label this line 'MPS Note: Carefully follow the instructions above and only draw the required objects. Does this graph exhibit diminishing returns? Explain your answer. ○ A. Yes, it does exhibit diminishing returns, because the marginal product of labor decreases. B. No, it does not exhibit diminishing returns, because the marginal product of labor is zero. ○ C. No, it does not exhibit diminishing returns, because the marginal product of labor is increasing. ○ D. Yes, it does exhibit diminishing returns, because the marginal product of labor is increasing. ○ E. Yes, it does exhibit diminishing returns, because the marginal product of labor is negative. Segment 2
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