Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the marginal productivity of labor diminishes in the short run
What will be an ideal response?
In the short run, MPL = 0.25 ? (q/L). The change in MP with respect to L equals d(MP)/dL = -0.25 ? q/L2. Thus for all levels of labor hired, MP falls as L increases.
Economics
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A) velocity. B) real money balances. C) wage rates. D) interest rates.
Economics
At the minimum efficient level of production:
A. a firm will be at the only short-run economically efficient level of production. B. production has expanded to make the firm profitable at any price. C. the market has expanded sufficiently to take advantage of all economies of scale. D. a firm will be at the only technically efficient level of production.
Economics