if a  2.50, b  0.60, and c  1, the marginal products of x₁, x₂, and x₃ (in this order) are

A) increasing, decreasing, and constant.
B) decreasing, increasing, and decreasing.
C) all increasing.
D) all decreasing.
E) all increasing if A  1.

Question

Matthew Anjorin · Accepted Answer

Final Answer : A, Explanation :  The marginal products, represented by the coefficients 2.50, 0.60, and 1, indicate how the output changes with a one-unit increase in each respective input. A marginal product of 2.50 suggests increasing returns to scale for the first input, 0.60 indicates decreasing returns for the second input, and a constant value of 1 for the third input suggests constant returns to scale.

if a  2.50, b  0.60, and c  1, the marginal products of x₁, x₂, and x₃ (in this order) are

A) increasing, decreasing, and constant.
B) decreasing, increasing, and decreasing.
C) all increasing.
D) all decreasing.
E) all increasing if A  1.

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Learning Objectives

Related questions

if a  2.50, b  0.60, and c  1, the marginal products of x1, x2, and x3 (in this order) areA) increasing, decreasing, and constant.B) decreasing, increasing, and decreasing.C) all increasing.D) all decreasing.E) all increasing if A  1.

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Learning Objectives

Learning Objectives

Related questions

if a  2.50, b  0.60, and c  1, the marginal products of x₁, x₂, and x₃ (in this order) are

A) increasing, decreasing, and constant.
B) decreasing, increasing, and decreasing.
C) all increasing.
D) all decreasing.
E) all increasing if A  1.