The following diagram depicts the production function of the farmers, where diminishing average product of labour is assumed. You know that that for 2,800 farmers, the grain output is 894,000 kilos. Read the following statements and select the correct two.

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Question

The following diagram depicts the production function of the farmers, where diminishing average product of labour is assumed. You know that that for 2,800 farmers, the grain output is 894,000 kilos. Read the following statements and select the correct two.

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Answer

The decreasing slopes of the rays from the origin to the production function along the curve indicate the decreasing average product of labour.

Answer

The costs of production are decreasing as the number of farmers increases.

Answer

If the production function curve is an upward-sloping straight line, then there is no diminishing average product of labour.

Answer

The average product of labour when the labour input is 2,800 is 300.

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The following diagram depicts the production function of the farmers, where dimi...

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