Suppose the daily output Q of a factory depends on the amount K of capital investment and
Question:
Suppose the daily output Q of a factory depends on the amount K of capital investment and on the size L of the labor force. A law of diminishing returns states that in certain circumstances, there is a value L0 such that the marginal product of labor will be increasing for L < L0 and decreasing for L > L0.
Translate this law of diminishing returns into statements about the sign of a certain second order partial derivative.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
Question Posted: