You have been doing research for a firm andhave discovered that the firm’s averageproduct of capital is decreasing. If capital is the onlyvariable input, what does this imply about the firmsmarginal product of capital?
You have been doing research for a firm andhave discovered that the firm’s averageproduct of capital is decreasing. If capital is the onlyvariable input, what does this imply about the firmsmarginal product of capital?
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 16P
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You have been doing research for a firm and
have discovered that the firm’s average
product of capital is decreasing. If capital is the only
variable input, what does this imply about the firms
marginal product of capital?
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