Microeconomic Theory: Production Functions

It signifies a constant marginal physical product

By adding the next unit of labor, the increase in total production is negative

By adding the next unit of labor, the increase in total production is higher than before (correct)

By adding the next unit of labor, the increase in total production is lower than before (but total production is still increasing)

$MPL = \frac{Q}{K}$

$MPL = \frac{Q}{L}$

$MPL = \frac{\partial Q}{\partial L}$ (correct)

$MPL = \frac{\partial Q}{\partial K}$

The marginal physical product is decreasing (correct)

The marginal physical product is increasing

The marginal physical product is constant

The marginal physical product is negative

<p>$APC = \frac{Q}{K}$</p> Signup and view all the answers

<p>$MPL$ has become negative</p> Signup and view all the answers