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nakungth nakungth
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7 years ago
Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor).  The average product of labor and the marginal product of labor are both equal to AP = MP = 5K.  Does labor exhibit diminishing marginal returns in this case?
A) Yes, if capital also exhibits diminishing marginal returns.
B) Yes, this is true for all values of K.
C) No, the marginal product of labor is constant (for a given K).
D) No, the marginal product of labor is increasing (for a given K).
Textbook 
Microeconomics

Microeconomics


Edition: 8th
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Bart_argBart_arg
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7 years ago
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nakungth Author
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7 years ago
Good timing, thanks!
Kstan109
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Yesterday
Brilliant ツ
Hellish Lover
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2 hours ago
this is exactly what I needed
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