Assume that a very unusual production process involves increasing ...

[pane00]

Assume that a very unusual production process involves increasing marginal productivity that appears to have no end. What would the total productivity function look like? Comment on the likelihood of such a function in the real world.
 
  What will be an ideal response?

Question 2

For a common resource, the marginal private benefit of the resource is greater than the marginal social benefit.
 
  Indicate whether the statement is true or false

[hanadaa]

Answer to Question 1

The total product function would be upward-sloping and would be increasing at an increasing rate. In other words, the slope would keep getting progressively steeper as more labor is added. That doesn't seem plausible in the real world because what we generally see is either constant marginal product or diminishing marginal product.

Answer to Question 2

FALSE