Author Question: A student wrote: When the average product of labor exceeds the marginal product, the marginal ... (Read 135 times)

vHAUNG6011 · **on:** Jun 29, 2018

A student wrote: When the average product of labor exceeds the marginal product, the marginal product is increasing. If you were the instructor, how would you correct this statement?

What will be an ideal response?

Question 2

The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is 10,000 each, then the

A) marginal social cost curve lies 10,000 to the left of the private marginal benefit curve.
B) marginal social cost curve lies 10,000 to the right of the private marginal benefit curve.
C) marginal social benefit curve lies 10,000 below the private marginal benefit curve.
D) marginal social benefit curve lies 10,000 above the private marginal benefit curve.

Jsherida · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

There are several errors. The corrected sentence is When the average marginal product of labor exceeds the marginal average product, the marginal average product is increasing.

Answer to Question 2

D