5) Arswer the following questions based on the graph below: a)From point A to B and from B to C, is production exhibiting increasing, decreasing, or constant retums to scale? b)Between points B and D, is production exhibiting increasing or decreasing marginal retums? c) Describe the difference between retums to scale and marginal retums of labor. K 2,800 E D 1,400 1,000 q=60 q=50 q=40 80 100 140 280 320 L

5) Arswer the following questions based on the graph below: a)From point A to B and from B to C, is production exhibiting increasing, decreasing, or constant retums to scale? b)Between points B and D, is production exhibiting increasing or decreasing marginal retums? c) Describe the difference between retums to scale and marginal retums of labor. K 2,800 E D 1,400 1,000 q=60 q=50 q=40 80 100 140 280 320 L

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.9P

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