Describe the relationship between marginal productivity and average productivity. Use calculus or a graph to support your answer
What will be an ideal response?
AP = Q(L)/L. dAP/dL = ([L ? MP] - Q) /L2 = (MP - AP)/L. Thus, if MP = AP, AP is constant. If MP > AP, AP will rise. If MP < AP, AP will fall.
Economics
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When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved
Indicate whether the statement is true or false
Economics
The unemployment rate is equal to
a. the number unemployed divided by the labor force. b. the number unemployed divided by the population. c. the number unemployed divided by the number employed. d. the labor force divided by the population.
Economics