We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. Are the following statements then True or False? Explain. For such production technologies, the marginal product of labor is increasing so long as the slope of the production frontier becomes steeper as we move toward more (we are increasing) the labor input.

Q: Suppose the Machine rental rate decreases from $20 per hour to $10 per hour, while the rental rate…

A: Isoclines are curves on an isoquant map that pass through points with identical marginal rates of…

Q: Given the production function q = 1.37LK, what is the marginal product of labor? A) 1.37 B) 0 C)…

A: Marginal product of labor is the additional output produced by employing an additional worker

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A: q = 2KL + L  K = 5 Average product of labor = Total product / Labor

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Q: Draw a production function that exhibits diminishing marginal product of labour. Draw the associated…

A:

Q: The least-cost input combination is and for a total cost of On the preceding graph, use the green…

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Q: Consider the case of a firm that produces output x (sold at price p) using a production function x =…

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Q: When production function  q= 0.4 LK+ 3 L^2K- 0.07 L^3K and  K= 12 are given, find amount of labor at…

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A: 2.1 Prove, with the aid of mathematics, the type of returns to scale exhibited by this production…

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

A: Q = (200)L + (100)K – (0.2)L2 – (0.1)K2

Q: Suppose a firm’s production function is given by q = 2KL + L  , where K is capital and L is labor.…

A: The average product of labor is nothing but the total product per unit of labor.  APL = TP / L

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A:

Q: Suppose a firm has a Cobb Douglas production function and is initially producing 50 units of output…

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Q: In the Cost Minimization Problem, the isoquant curve for an output level equal to the output quota?…

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Q: Consider a production function Q = (K.5 + L.5) 2    Does this production function exhibit…

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Q: A farmer raises apples using land (K) and labor (L), and has an output of ? (?,?) = ? 0.5 ? 0.5…

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A:

Q: Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they…

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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.