What will happen to the marginal product of labor and marginal costs at higher production? Why?
Added by Linda H.
Close
Step 1
This is due to the law of diminishing marginal returns, which states that as more units of a variable input (labor) are added to a fixed input (capital), the marginal product of the variable input will eventually decline. Show more…
Show all steps
Your feedback will help us improve your experience
Niamat Khuda and 71 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Why do we expect the law of diminishing marginal returns to hold?
Firms and Production
Short-Run Production
when a firm increases labor input usage, what happens to total production, marginal production, and average production?
Crystal W.
Complete the table directly below by calculating marginal product and average product. Plot the total, marginal, and average products and explain in detail the relationship between each pair of curves. Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishing returns have on short-run costs? Be specific. "When marginal product is rising, marginal cost is falling. And when marginal product is diminishing, marginal cost is rising." Illustrate and explain graphically. $$\begin{aligned} &\\ &\begin{array}{|c|c|c|c|} \hline \begin{array}{c} \text { Inputs of } \\ \text { Labor } \end{array} & \begin{array}{c} \text { Total } \\ \text { Product } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Product } \end{array} & \begin{array}{c} \text { Average } \\ \text { Product } \end{array} \\ \hline 0 & 0 & & \\ 1 & 15 & & \\ 2 & 34 & & \\ 3 & 51 & & \\ 4 & 65 & & \\ 5 & 74 & & \\ 6 & 80 & & \\ 7 & 83 & & \\ 8 & 82 & & \\ \hline \end{array} \end{aligned}$$
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD