Question
Answer the following questions: (a) Why is it that when the average product (AP) of labor is on its increasing leg, the marginal product (MP)
Answer the following questions:
(a) Why is it that when the average product (AP) of labor is on its increasing leg, the marginal product (MP) is greater than the average product (AP)?
(b) Why do diminishing returns occur? Present 3 different examples
(c) Does it make sense for a firm to continue producing despite generating losses? why?
NOTE: These questions are as defined by the teacher.
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Intermediate Microeconomics
Authors: Hal R. Varian
8th edition
393934241, 978-0393934243
