Suppose a Short-Run Production Function Always Increases at a Constant

question 106

Essay

Suppose a short-run production function always increases at a constant rate of three units of output for every additional worker added. What does this imply about the marginal product of labor? Is this realistic? Explain.

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Definitions:

Mead

A fermented beverage made from honey, water, and sometimes fruits, grains, spices, or hops.

Generalized Other

People who don’t have close ties to a child but who influence the child’s internalization of society’s norms and values.

Society's Norms

The unwritten rules and expectations that guide behavior and interactions within a community or society.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.