Does the production function in the table above exhibit diminishing returns? Explain
What will be an ideal response?
No, the production function does not exhibit diminishing returns. As the amount of labor hired increases, the marginal product of labor is constant. This violates the law of diminishing returns.
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An open market purchase of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and a reduction in the federal funds rate B) an excess quantity of reserves demanded and an increase in the federal funds rate C) an excess quantity of reserves demanded and a reduction in the federal funds rate D) an excess quantity of reserves supplied and an increase in the federal funds rate
What is job search and what is the relationship between job search and unemployment? What factors can affect the amount of job search? Briefly discuss the effect of each factor
What will be an ideal response?
Suppose the quantity of sodas and the quantity of popcorn are on an indifference curve/budget line diagram. An increase in income shifts the budget line ________ and, if popcorn is a normal good, shifts the demand curve for popcorn ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
According to the new classical theory, anticipated policies do not affect the economy.
Answer the following statement true (T) or false (F)