Is the below statement correct or incorrect? Explain Briefly. If average product is negative, average product must be negative.

Q: Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these two…

A: The marginal physical product of labour can be defined as the increase in firms' revenue due to the…

Q: What is marginal product, and what does it mean if it is diminishing?

A: The marginal product is determined by the change in total output as one additional input is used in…

Q: When the marginal product curve is downward sloping, the average product curve? 1. might be either…

A: Average product curve indicates the per unit output at each level of input variable. MP indicates…

Q: Which of the following statements is FALSE? At point "A", the average product of labor is falling.…

A: In the first stage, AP increases at an increasing rate and MP also increases at an increasing rate…

Q: Joe’s coffee house produces coffee drinks under the production function q = 5KL where q is the…

A: Production function shows the functional relationship between inputs and outputs. Average product of…

Q: Which of the following is correct about marginal and average products? A) When the average product…

A: Marginal product refers to addition in total output and when more unit of variable input is used in…

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of transformation of inputs into output by using factors of production .…

Q: When the marginal product is greater than the average product, the average product is . .. . .. ..…

A: In a market when a firm produces output using variable inputs, there is a connection between total…

Q: In a relationship among total, average and marginal products, where TP is maximized:

A: The Total product (TP) implies the sum total of output produced using each nit of variable factor.…

Q: When analyzing isoquants, if the marginal product of all inputs double, how would that change the…

A: Isoquants are the curve that depicts a various mix of labor (l) and capital (k) that can be used to…

Q: Suppose that output is a function of labor and capital. Assume that labor is the variable input and…

A: Law of diminishing marginal product states that as we increase the variable factor ( for example…

Q: The equation below is a production function,   Q = (200)L + (100)K – (0.2)L2 – (0.1)K2     , where…

A: Production function, Q = 200L + 100K – 0.2L2 – 0.1K2To find the marginal productivity of labor…

Q: Use the diagram of production function to explain why variable costs increases at a decreasing rate…

A: Cost are of production two types: Variable cost and the Fixed cost. Variable cost is the cost that…

Q: Suppose that output is a function of labor and capital. Assume that labor is the variable input and…

A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…

Q: Which of the following is NOT a feature of iso-product curve? Iso- product curves

A: An iso-product curve is locus of numerous mixtures of elements of manufacturing giving the identical…

Q: true or false The closer an isoquant is to a straight line, the closer the inputs are to being…

A: An isoquant refers to a line that shows all the input combinations that yield the same level of…

Q: When the total product curve is falling, the:  a. average product of labor is increasing.  b.…

A: In simple terms, Total Product is the total volume or sum of final output produced by a firm in a…

Q: Determine whether each of the statement is true, false, or uncertain. If the statement is false or…

A: The diminishing marginal product of labor is a short-run phenomenon, which explains that after…

Q: You have fulfilled your dream by buying a McDonald’s franchise. You start hiring employees and come…

A: This occurs due to the Law of Diminishing Returns. According to this law, as more and more units of…

Q: 9. If a firm moves from one point on a production isoquant to another point on the same isoquant,…

A: Since you have posted multiple questions, we will solve only the first question for you. If you want…

Q: Show that the Cobb – Douglas production function f(x,,x, )= Axx , with 0 0, x, > 0.

A: Given information Cobb-Douglas production functionf(x1,x2)=Ax1αx2βWhere 0<α,β<1and…

Q: Say the marginal product of labour in production is 4 and the average product of labour is 7. Then,…

A: Marginal product of labor refers to an increase in total product because of addition of one more…

Q: Describe the relationship between the marginal product and the total product of a firm [

A: Total product can be defined as the total output produced by all the workers while the marginal…

Q: As the marginal physical product of a variable input increases, the marginal cost decreases. a.…

A: The cost of one additional unit of output is known as marginal cost. The concept is used to…

Q: At the point of inflexion, the marginal product is

A: To find : What will be value of marginal product at point of inflexion.

Q: 10: Consider a car manufacturer which uses capital K and labor L to produce q cars according to the…

A: Given, r = 3 w=1 q=f(L, K)=L18K38

Q: Why might marginal product be increasing at lower levels of output and decreasing at higher levels…

A: Marginal product (MP) is the extra output produced by one additional unit of input or raw material…

Q: Explain what is meant by and what causes "Diminishing Marginal Product". Why is it only relevant in…

A: Marginal product refers to the increase in outpit resulting from employing additional units of…

Q: What is the law of diminishing marginal product, In which stages of production it manifest and What…

A: According to the rule of decreasing marginal returns, any manufacturing process will reach a point…

Q: At point "C" in the above figure: Marginal product of labor is positive and rising. Marginal product…

A: From the figure, we can conclude that,

Q: What is the distinction between the laws and of returns and the returns to scale?

A:

Q: Give relation between average product and marginal product.

A: Average Product is the total product per unit of output. Average Product =Total ProductOutput…

Q: If the marginal product equals the average product, we are at the ____. point of the ____ curve.

A: The output produced by the firm with the given resources in a particular time period is known as the…

Q: Question attahed in image

A: The average product of labor is the ratio of the total output with respect to the total number of…

Q: Quantity of output (# of cookies Total product curve per hour) Quantity of input (# of workers) In…

A: *ANSWER :-

Q: Complete the following table by calculating marginal product and average product. Instructions:…

A: Formulas which we are going to use in this question are: 1. Marginal Product (MP) = Total Product at…

Q: Describe the difference between a diminishing marginal product of labor and a negative marginal…

A: Law of diminishing marginal product is a short run concept where some factors are fixed and some are…

Q: What is the average product of labor, given that the level of labor equals 15, total output…

A: Labor are the people who work in the business organization and get salaries/wages in return. Labor…

Q: What is the difference between a fixed input and a variable input?

A: Inputs are the resources that are used in the production of output. There are generally four inputs…

Q: Consider the following short run production information: Marginal Product Average Product of Labor…

A: Marginal product = Change in total output/change in input

Q: The law of diminishing marginal returns states: Select one: a. As a firm uses more of a variable…

A: Economics deals with the supply and demand of resources. Firms emerged as primary bodies responsible…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.