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Table 18-3 Number of Workers (L) Output of Firm A 100 200 300 400 Output of Firm

ID: 1159145 • Letter: T

Question

Table 18-3 Number of Workers (L) Output of Firm A 100 200 300 400 Output of Firm B 100 300 600 1,000 Output of Firm C 100 190 270 340 Output of Firm D 100 80 60 40 4 1. Refer to Table 18-3. Which firm's production function exhibits positive but diminishing marginal product? a. Firm A b. Firm B c. Firm C d. Firm D 2. Refer to Table 18-3. For Firm A, the marginal product of labor is a. increasing. b. constant. c. decreasing. d. negative. 3. Refer to Table 18-3. For Firm B, the marginal product of labor is a. increasing. b. constant. c. decreasing. d. negative. 4. Refer to Table 18-3. For Firm C, the marginal product of labor is a. increasing. b. constant. c. decreasing. d. negative. 5. Refer to Table 18-3. For Firm D, the marginal product of labor is a. increasing. b constant. c. decreasing. d. negative.

Explanation / Answer

Answer of 1

Table 1

From Table 1, we can see that Firm C production function is Positive but having diminishing marginal product.

So, the answer is 'Option c (Firm C)'.

Answer of 2

From Table 1, the marginal product of Firm A is "constant".

So, the answer is 'Option b (constant)'.

Answer of 3

From Table 1, the marginal product of Firm B is "increasing".

So, the answer is 'Option a (increasing)'.

Answer of 4

From Table 1, the marginal product of Firm C is "decreasing".

So, the answer is 'Option c (decreasing)'.

Answer of 5

From Table 1, the marginal product of Firm D is "Negative".

So, the answer is 'Option d (Negative)'.

No. of Workers (L) Firm A Production function Marginal product Firm B Production function Marginal product Firm C Production function Marginal product Firn D Production function Marginal product 1 100 - 100 - 100 - 100 2 200 + 100 300 + 200 190 + 90 80 - -20 3 300 + 100 600 + 300 270 + 80 60 - -20 4 400 + 100 1000 + 400 340 + 70 40 - -20