At low levels of production, marginal productivity of labor increases as labor increases. At high levels of production, marginal productivity of labor decreases as labor increases. Are these two statements contradictory? Explain
What will be an ideal response?
No. At low levels of production, marginal productivity of labor can increase due to specialization. Eventually, however, diminishing marginal productivity will commence.
Economics
You might also like to view...
Pollution regulation by requiring firms to implement specific equipment or actions is known as ___________
a. Pigouvian or pollution taxes b. tradable pollution permits c. pollution standards d. technology-based regulations e. None of the above.
Economics
The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The marginal propensity to consume in Syldavia is equal to
A) 0.80. B) 5.00. C) 0.75. D) 0.20. E) 0.40.
Economics