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Suppose that the organization you are working for wantsto increase its annual production, measured in units,by 50%.Also, assume that your organization's output i. is an
Suppose that the organization you are working for wantsto increase its annual production, measured in units,by 50%.Also, assume that your organization's output i. is an increasing function of only capital and labor and ii. thatthe law of diminishing returns to a single factorholds for both capitaland labor. Given that the marginal product of labor is greater than zero for any level of employment, does it follow that the average product of labor is an increasing function of employment? Explain
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