# Urgent!! ECON Question Help!!!

Consider a price-taking firm producing an output for which capital and labour are the only inputs. Suppose the marginal product of labour is a decreasing function of the amount of labour used. From this we can infer that the firm’s marginal cost is:

a)A decreasing function of output.

b)An increasing function of output.

c)A constant function of output.

d)None of the above.

Consider a price-taking firm producing an output for which capital and labour are the only inputs. Suppose both the marginal product of labour and the marginal product of capital are increasing functions (of labour and capital, respectively). From this we can infer that the firm’s marginal cost is:

a)A decreasing function of output.

b)An increasing function of output.

c)A constant function of output.

d)None of the above.

Which one is the answer? could you explain why?

Update:

butQ1 ans is d,not b but I don't know why?

Rating

1. b

2. a

1, marginal product of labour is a decreasing = effieient is become lower. Cost per unit will increase. Marginal cost will increased.

2. marginal product of labour and the marginal product of capital are increasing functions; Production efficient is increasing. Marginal Cost will decresed.

2009-09-02 09:11:21 補充：

"Amount of labour used decreased" is labour efficient increased because of their skill on production is becoming matured.

Hence, the marginal cost will decrease in first stage and then will increased! The curve is U shape. Hence The answer is none of above.