Asked by
Leslie Leola
on Oct 27, 2024Verified
If two firms are identical in all respects except that one has more of the fixed input capital than another,the marginal product curve for the firm with more capital:
A) must equal the marginal product curve for the firm with less capital.
B) will lie above the marginal product curve for the firm with less capital.
C) will lie below the total marginal curve for the firm with less capital.
D) will show no diminishing marginal returns.
Marginal Product Curve
The marginal product curve depicts the change in output resulting from employing one more unit of a specific input, holding all other inputs constant, and typically features phases of increasing, constant, and diminishing marginal returns.
Fixed Input
A resource or input in the production process that remains unchanged regardless of the level of output or production.
Capital
Resources, such as funds or other assets, that are available for use in the production of goods or services and investment.
- Comprehend how capital and labor affect the shapes of the total and marginal product curves.
Verified Answer
DA
Learning Objectives
- Comprehend how capital and labor affect the shapes of the total and marginal product curves.