Question
Asked Oct 16, 2019
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Consider the production function of the firm below. Which of the following is NOT true?

The marginal product of labor at B is 70 units.

The total product is increasing as inputs to production increase.

The marginal product of capital at point D is 50.

The marginal products of both labor and capital are always increasing.

Production Point|Output Typewriters Employees
1 1
70
A
B
1
100
1
1
2
150
175
2
2
D
3
E
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Production Point|Output Typewriters Employees 1 1 70 A B 1 100 1 1 2 150 175 2 2 D 3 E

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Expert Answer

Step 1

The marginal product of labor at B is 70 units – It is true (70-0)

The total product is increasing as inputs to production increase – It is true

The marginal product of capital at point D is 50 – It is true (150-100)

The marginal products of both labor and capital...

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