Asked by Yakelin Zamora on Jul 09, 2024
Verified
(Figure: The Total Product) Use Figure: The Total Product.As labor is hired between L1 and L2,the total product is _____ and the marginal product is _____.
A) increasing;positive
B) decreasing;zero
C) increasing;negative
D) increasing;zero
Total Product
The overall quantity of output produced by a firm from a given quantity of inputs, in the context of production theory.
Marginal Product
Marginal product refers to the additional output generated by employing one more unit of a specific factor of production, such as labor or capital.
- Gain an understanding of how total product, marginal product, and production stages are interrelated.
Verified Answer
TM
The mail blastJul 12, 2024
Final Answer :
A
Explanation :
As labor is hired between L1 and L2, the total product is increasing as the amount of labor input is increasing. The marginal product is positive because each additional unit of labor is adding more output than the previous unit, indicating increasing returns to scale.
Learning Objectives
- Gain an understanding of how total product, marginal product, and production stages are interrelated.
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