HW10S_302 - Econ 302- Solution to problem set 9 Spring...

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Econ 302- Solution to problem set 9 Spring 2010-Ali Toossi Due: Wednesday, April 14 Chapter 9: Questions for review Answer to question 3. The person hiring wants to know how much an additional worker will add to total production which is the marginal product of the labor. Answer to question 4. His IQ was below average for New York, but above average for California. Answer to question 6. Decreasing returns is a long-run phenomenon; diminishing returns is a short-run phenomenon. Answer to question 7. As shown in the diagram, MP is decreasing from L 1 onward, whereas AP does not begin to decline until L 2 . So false. MP, AP L AP(L) MP(L) L L 1 2 Answer to question 9. Under constant returns the output will be 2, under decreasing returns to scale the output will be less than 2 and under increasing returns to scale the output will be above 2. 1
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Chapter 9: Problems Answer to problem 1. The graphs below answer question 1.
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This note was uploaded on 08/02/2010 for the course ECON ECON 302 taught by Professor Arvan-rad during the Spring '09 term at University of Illinois at Urbana–Champaign.

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HW10S_302 - Econ 302- Solution to problem set 9 Spring...

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