EQ 8 2010 answer

EQ 8 2010 answer - (d) To what stage of production does...

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EQ #8 – AGEC 105 – March 1, 2010 This EQ is worth 5 points. 1. (a) Labor (hours) Wheat Production (bushels) 20 60 30 75 The relationship between labor and wheat production is technically referred to as the TPP curve or production function. (b) What is the MPP of labor? 1.5 bushels/hour (c) What is the APP of labor when labor is 20 hours? 3 bushels/hour
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Unformatted text preview: (d) To what stage of production does this situation correspond? 2 Why? Because APP>MPP 2. This question pertains to assumptions of perfect competition. Large number of sellers or few sellers? Differentiated products or homogeneous products ?...
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This document was uploaded on 12/13/2010.

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