Question

*Please explain why* If the marginal product of capital doesn’t change as the amount of capital...

*Please explain why*

If the marginal product of capital doesn’t change as the amount of capital increases, but production increases, then a plot of the production function, showing output as a function of capital,

A. is a vertical line.

B. is a straight line with a slope of zero.

C. is a straight line with constant upward slope.

D. slopes upward with a slope that declines as the amount of capital increases.

Homework Answers

Answer #1

Ans) C is the correct option. is a straight line with constant upward slope. Marginal product of capital is the additional output from the use of additional capital. marginal product of capital is constant so equal to the average product of capital. This reflects that the total product will be a straight line with upward slope because the production or the output is increasing. The reciprocal of the marginal product of capital is the incremental capital output ratio.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(a) Suppose the marginal product of labor is 8 and the marginal product of capital is...
(a) Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price of capital is $2, then in order to minimize costs should the firm hire more workers or rent more capital? Please explain. (b) Suppose the production function is given by Q = min{K, L}. How much output is produced when 10 units of labor and 9 units of capital are employed? Please explain.
For the production function Q(K,L) = K0.5L0.5, the marginal product of capital is: Please explain your...
For the production function Q(K,L) = K0.5L0.5, the marginal product of capital is: Please explain your answer, thank you.
A firm's marginal product of labor is 4 and its marginal product of capital is 5....
A firm's marginal product of labor is 4 and its marginal product of capital is 5. If the firm adds one unit of labor, but does not want its output quantity to change, how many more or less units of capital the firm should use? A firm has the production function ? = ?(?1, ?2) = ?10.5 ?22. Does this firm have an increasing or decreasing return to scale? Why? Does this firm have increasing or decreasing marginal product for...
10. When the price of a good changes, the total effect of the price change on...
10. When the price of a good changes, the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased A) on the old budget line and the new budget line. B) on the original indifference curve when faced with the original prices and when faced with the new prices. C) on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve. D)...
Explain why the change in the marginal product is not constant as additional workers are hired.
Explain why the change in the marginal product is not constant as additional workers are hired.
1. Explain the behavior of marginal physical product of labor, as labor input increases with capital...
1. Explain the behavior of marginal physical product of labor, as labor input increases with capital remaining constant. State the law that we get in this regard. 2.The total cost function of a firm is TC = 100 + 10 Q -2 Q 2 + 3 Q 3 where TC and Q denote total cost and output, respectively. Determine the level of fixed cost (if any), and equations for average total cost and average variable cost.
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale b. Decreasing Returns to Scale c. Increasing Returns to Scale d. Constant Returns to Scale e. Diseconomy of Scale 2. A production function where the MRTS is constant at all points. Isoquants are straight lines. Select one: a. Production Function b. Isoquant c. Perfect Substitutes Production Function d. Isocost Line e. Technology Function f. Fixed-Proportions Production Function 3. A production function with L-shaped isoquants...
1.The marginal revenue product of labor is equal to the product of: a.the wage rate and...
1.The marginal revenue product of labor is equal to the product of: a.the wage rate and the marginal product of labor. b.the marginal product of labor and the quantity of labor employed. c.marginal product of labor and total revenue of the firm. d.the wage rate and marginal revenue per unit of output. e.the marginal revenue per unit of output and the marginal product of labor. 2 A profit-maximizing firm will hire the variable input, labor, until the point where: a.marginal...
2.Explain why the slope of the production function falls as more workers are hired, that is,...
2.Explain why the slope of the production function falls as more workers are hired, that is, total product increases at a decreasing rate, while the slope of the total cost curve rises as more output is produced, that is, TC increases at an increasing rate. Use the personal opinion to answer,thanks.
The aggregate production function shows a(n) ________ relationship between ________ and output. A. decreasing; capital stock...
The aggregate production function shows a(n) ________ relationship between ________ and output. A. decreasing; capital stock B. increasing; capital stock C. constant; labor D. decreasing; labor Country X and Country Y have identical aggregate production functions as shown below. The amount of capital stock available to each country is also equal. However, Country X has LX amount of labor supply while Country Y has LY amount of labor supply. What does the slope of the aggregate production function imply? A....