2. The following figure illustrates a production relationship for a wheat farm. Use the information in the figure to answer the following questions. MPP and APP Curves 200 - 150 - Production Value APP MPP 100 - 50 - 10 15 20 Labor a. At approximately what level of labor does diminishing marginal returns begin? Explain the concept of diminishing marginal returns. b. At 5 units of labor the MPP is than the APP. Is the slope increasing or decreasing for APP? C. At 20 units of labor the MPP is than the APP. Is the slope increasing or decreasing for APP? d. At approximately what range of labor would identify stage I of production? Explain why firms are unlikely to produce over this range. 3. Suppose in the current stage of production the MPP is less than the APP. Is the slope for the APP increasing, decreasing, or unable to determine given the current information? 4. Suppose in the current stage of production the MPP is greater than the APP. Is the slope for the MPP increasing, decreasing, or unable to determine given the current information