The law of diminishing marginal product states that: O A. in the long run as the firm uses more of a variable resource with a given fixed resource marginal product will decrease eventually B. in the short run as the firm uses more of a variable resource with a given fixed resource average product will increase eventually OC. in the short run as the firm uses more of a variable resource with a given fixed resource marginal product will decrease eventually D. None of the above

The law of diminishing marginal product states that: O A. in the long run as the firm uses more of a variable resource with a given fixed resource marginal product will decrease eventually B. in the short run as the firm uses more of a variable resource with a given fixed resource average product will increase eventually OC. in the short run as the firm uses more of a variable resource with a given fixed resource marginal product will decrease eventually D. None of the above

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 5P

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According to the law of diminishing return in short run O as we hire more labors, while other inputs are fixed, the marginal product of exah extra labor will decrease O If we double all inputs, output will increase by less than double O If we double all inputs, output will decrease by more than double O If we double all inputs, output will increase by double
Consider this production function. Study hours 2. 4 10 11 12 14 15 or more 13 Grade 20 33 42 50 57 63 69 73 78 81 84 86 88 89 90 1007 90 - 80 70 60 S0 40 30 20 10 Hours of study per day Select one or more: a. The average product of labour is falling as hours of study increase. O b. The marginal product of labour is constant as hours of study increase. O c. The marginal product of labour is rising as hours of study increase. U d. The marginal product of labour is zero beyond 15 hours. Final grade 9-
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