Sketch graph a standard short-run production functions, and identify on it the points where the average product peaks, the marginal product peaks, the marginal product reaches zero, and the average and marginal product intersect.
What will be an ideal response?
Make sure the average product peaks at the output where the ray from the origin is tangent to the total product curve and where the marginal product passes through it. The marginal product must peak at the output where the inflection point is on the total product curve, and the marginal product reaches zero when the total product peaks.
You might also like to view...
Why might an amusement park switch from charging admission to the park and charging for the rides to charging for admission but not charging for the rides?
What will be an ideal response?
They very ________ growth of office and retail space in the 1980s was due in part to financial deregulation that ________
A) slow, limited the growth of bank and S&L deposits B) slow, gave massive tax advantages to mortgage lending C) rapid, allowed S&Ls to make business real estate loans D) rapid, raised the depreciation tax deduction on these structures