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Unformatted text preview: 0 units with 6 workers and the average product for the 7th worker is 14,
then the marginal product is
If a firm doubles all inputs and output more than doubles, there are
increasing returns to the variable factor
decreasing returns to scale
increasing returns to scale
constant returns to scale
If the income elasticity of demand for cars is 3.2, this means that
as income increases, the demand for cars increases more than 3 times
consumers will decrease the demand for cars as income increases
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This document was uploaded on 01/25/2014.
- Winter '14