Multiple Choice
Suppose the slope of a short-run production function is given by 2/L0.5. Which of the following statements is (are) TRUE?
I. The marginal product of the fifth worker is 0.20.
II. The production function exhibits increasing marginal returns.
III. The marginal product of the sixteenth worker is 0.50.
IV. The production function's slope eventually changes from positive to negative as the firm produces more and more.
A) II and III
B) I and IV
C) III
D) I, II, and IV
Correct Answer:
Verified
Correct Answer:
Verified
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