Posted: March 7th, 2017

The Marginal Product curve of input Y shows how the quantity of output produced changes for each amount of input

. The Marginal Product curve of input Y shows
how the quantity of output produced changes for each amount of input Y, whether or not all other inputs are held constant
howthe quantity of output produced changes for each amount of input Y, holding all other inputs constant
how the average quantity of output produced varies with input Y, whether or not all other inputs are held constant
how the average quantity of output produced varies with input Y, holding all other inputs constant

2. Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L), then:
this production function will certainly display decreasing returns to scale
this production function will certainly display constant returns to scale
this production function will certainly display increasing returns to scale
this production function may display increasing returns to scale