Consider the following diagram of the per-worker production function (output per worker as a function of capitalper worker)A.Production functionCapital equipment per worker ($ thousands)Which 2 of the following statements are correct?Select one or more:а.The higher capital per worker is, the higher the marginal product of capital is.b. The diagram is consistent with the diminishing marginal product of capital.O c. When workers have less capital, an increase in capital per worker has much more impact than when theyalready have a lot.O d. The slope of a tangent to the curve shows the marginal product of labourOutput per worker ($ thousands)

Production function shows how with increases in the input the output increases. It gives the…

hich 2 of the following statements are correct? elect one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. c. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour

hich 2 of the following statements are correct? elect one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. c. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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Consider the following diagram of the per-worker production function (output per worker as a function of capital per worker) Production function Capital equipment per worker (S thousands) Which 2 of the following statements are correct? Select one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. Oc. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour Output per worker (S thousands)
Economics, physical capital represents the uildings or machines used by a business to produce product. The marginal product of physical capital presents the rate of change of output product with spect to physical capital (informally, if you increase e size of your factory a little, how much more Foduct can you create?). articular model tells us that the output product Y is given, a function of capital K, by Y = AKªL'-a ere A is a constant, L is units of labor (assumed to be stant), and a is a constant between 0 and 1. Determine marginal product of physical capital predicted by this del. ned with CamScanner
Based on the notations and assumptions used in class, which of the following is/are TRUE regarding the production function y = ka, where 0 < a <1? (i) It is expressed in per capita form. (ii) The function exhibits constant returns to scale. (iii) Production per worker depends on the amount of capital per worker. O a. (i), (ii), and (iii) O b. Only (i) O c. Only (iii) O d. Only (ii)
1. Assume the following Cobb-Douglas production function: Y = 0.5K°.2 10 .8 If L=100, a. What is the marginal product of capital?e b. With your answer in (a), can you prove diminishing marginal product of capital?- c. Estimate real capital incomee
as Figure 11-1 D Real GDP per hour worked, YIL v $40 IC 8 T 1 60 Production function, Production function, Production function, Capital per hour worked, KIL Refer to Figure 11-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from Production function 1 to Production function 2 from Production function 2 to Production function 1. from Production function 1 to Production function 3. up along any of the production functions
Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: a. The slope of the function is the marginal product of capital. b. The figure shows that higher capital per worker increases output per worker. c. The figure shows that each extra $ of capital per worker raises output per worker by an equal amount. d. The function is "convex" (i.e., it has a slope which increases as capital per worker rises) Output per worker ($ thousands)
Draw a production function that shows the relationship between capital per worker and output per worker assuming there is diminishing returns to capital. Illustrate the diminishing returns to capital by showing the change in output per worker when capital is increased by 1 unit at two different levels of capital per worker.
Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: Ja. The figure shows that higher capital per worker increases output per worker. b. The figure shows that each extra $ of capital per worker raises output per worker by an equal amount. O c. The function is "convex" (i.e., it has a slope which increases as capital per worker rises) d. The slope of the function is the marginal product of capital. Output per worker ($ thousands)
3. What are the 2 variables that the Production Function is analyzing/graphing? Why does the production function diminish over time?
Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: O a. The figure shows that higher capital per worker increases output per worker. O b. The figure shows that each extra $ of capital per worker raises output per worker by an equal amount. O. The function is "convex" (i.e., it has a slope which increases as capital per worker rises) O d. The slope of the function is the marginal product of capital. Output per worker ($ thousands)
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