Consider the following diagram of the per-worker production function (output per worker as a function of capital per worker) Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. Oc. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour Output per worker (S thousands)

Consider the following diagram of the per-worker production function (output per worker as a function of capital per worker) Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. Oc. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour Output per worker (S thousands)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 8P

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