Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 14, Problem 2MCQ
To determine
Choose the correct answer from the following option: The average product of labor increases as output increases if ____.
- Marginal product exceeds average product
- Average product exceeds marginal product
- Total product increases
- Marginal product increases
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
Why does the marginal cost of production typically increase as the amount of output produced increases?
a.A fixed factor of production causes diminishing marginal product
b.Increasing returns to scale
c.There are no fixed factors of production
d.Decreasing returns to scale
UNITS OF
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When the marginal product of labor equals the average product of labor, then
a. the marginal product is still increasing.
b. the marginal product is maximized.
c. the average product is still increasing.
d. the average product is maximized.
Chapter 14 Solutions
Foundations of Economics (8th Edition)
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Similar questions
- What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?arrow_forwardWhen the average product is increasing, marginal product: a. equals average product b. is increasing c. exceeds average productd. is decreasing e. is less than average product.arrow_forwardIn a short-run production process, a diminishing marginal product of labor explains why marginal cos is? 1.A negative and falling 2.zero 3.positive but falling D. positive and risingarrow_forward
- Inputs of labor Total Product Average Product Marginal Product 1 15 2 34 3 51 65 74 80 83 8. 82 Requirements: 1. Calculate the marginal and average products. 2. The plot in a graph the marginal products. 3. Explain why marginal product first rise, then decline and ultimately becomes negative.arrow_forwardName Time Started Time Finished Variable input (Labor) 0 10 20 1. Define the following terms: production function, average product, marginal product, law of diminishing marginal returns, constant returns to scale, increasing returns to scale and decreasing returns to scale. 2. Complete the table below: 30 40 50 60 THEORY OF PRODUCTION Activity No. 6 70 80 90 100 110 120 130 140 Total Product 0 250 600 1200 1900 2700 3600 4400 5000 5425 5700 5825 5900 Course & Year Date Performed 5925 5875 Average Product Marginal Product With the values in the above table, plot Total Product (TP), Average Product (AP) and Marginal Product (MP) in a single graph with units of product at the vertical axis and labor units at the horizontal axis. You can also use two (2)graphs (TP above AP and MP curves) Label your graphs properly. Use graphing paper for your curves if you do not have computer/laptop access but insert graph is recommended. 3. Describe the shapes of the curves drawn. What relationship can…arrow_forwardExplain the Law diminishing return. Calculate the Marginal Product and Average product in the given table. No.of workers Total Product Marginal Product Average Product 0 0 - 1 80 2 170 3 270 4 368 5 430 6 480 7 504 8 504 9 495 10 470arrow_forward
- 19. Fill in the blanks in the accompanying table shown at the bot- tom of the page and answer the following questions: a. What happens to total product when marginal product is negative? b. What happens to average product when marginal product is greater than average product?arrow_forwardProduction in the Short Runarrow_forward2. The short-run production function for a manufacturer Number of Workers (Quantity of Labor) 1. 2. 3. 4. 5. 6. 7. of DVD drives is as follows Total Output of DVD Drives 0 a. Calculate the average product (AP) at each quantity of labor. b. Calculate the marginal product (MP) at each quantity of labor. 42000 90000 135000 160000 175000 174000 c. Which worker(s) are in the region of increasing marginal returns? d. Which worker(s) are in the region of diminishing marginal returns? e. Which worker(s) are in the region of negative marginal returns? f. In the region of diminishing marginal returns, what is happening to marginal cost?arrow_forward
- c. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the firm?arrow_forwardictions: (1) Use the tools provided 'AP' and 'MP' to draw the average product (AP) and marginal product (MP) curves. (2) To earn edit for this graph, you must plot all required points (L = 1, 2, 3, 4, 5, 6, 7, and 8) for each curve. Total Product Average and Marginal Product 20 Tools TP 15 AP MP 10 -5 1 2. 3 4 5 6 7 8 9 2 3 4 5 6 7 8 9 Labor input Labor input 8%%5品万刀的88899 Marginal and average productarrow_forwardFill in the missing values based on the above production schedule table. For average responses round two decimal placesarrow_forward
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