Suppose the Production Function for T-Shirts Can Be Represented as Q

question 58

Essay

Suppose the production function for T-shirts can be represented as q = L^0.25K^0.75. Show that the marginal productivity of labor diminishes in the short run.

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Definitions:

Price-earnings Ratio

A financial metric comparing a company's market price per share to its earnings per share, indicating the value given by the market for each dollar of earnings.

Price-earnings Ratio

The price-earnings ratio, or P/E ratio, measures a company's current share price relative to its per-share earnings, indicating the market's valuation of a company's growth potential.

Earnings per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Cumulative

Describes something that increases in quantity or effect over time, often in reference to data or statistics that are added together.