Asked Oct 17, 2019

Question 24
Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure output, in this case articles as in the production function of a newspaper; the graph of the production function, for the given level of capital K fixed, is composed of two line segments; the first goes from the origin to the point (10,30); the second, starting from 10 on, is a horizontal line; it is also shown that the production for five units of labor is 15).


Can we say that the production function satisfies the law of decreasing marginal returns of labor?

30 f(10, K)
15 f(5, K)

Image Transcriptionclose

articles 30 f(10, K) 15 f(5, K) labor 10


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Step 1

False, the production function does not satisfy the law of ...

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