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
You might also like to view...
The value of the absolute price elasticity of demand for good X is 3. The absolute price elasticity for good Y is 2. Which good's quantity demanded is less responsive to a change in price?
A) Good X B) Good Y C) They are equally responsive. D) Not enough information is given.
Economics
Higher productivity is the most direct route to higher living standards
a. True b. False
Economics