11.1 Digging clams by hand in Sunset Bay requires only labor input. The total number of clams...
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11.1 Digging clams by hand in Sunset Bay requires only labor input. The total number of clams obtained per hour (q) is given by q 100L, where L is labor input per hour.
a. Graph the relationship between q and L.
b. What is the average productivity of labor in Sunset Bay? Graph this relationship and show that APL diminishes for increases in labor input.
c. Show that the marginal productivity of labor in Sunset Bay is given by MPL 50/L.
Graph this relationship and show that MPL APL for all values of L. Explain why this is so.
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Related Book For
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324270860
9th Edition
Authors: Walter Nicholson
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