Question: Plot the total, marginal, and average products and explain in detail the relationship between each pair of curves. Explain why marginal product first rises, then
Plot the total, marginal, and average products and explain in detail the relationship between each pair of curves. Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishing returns have on short-run costs? Be specific. “When marginal product is rising, marginal cost is falling. When marginal product is diminishing, marginal cost is rising.” Illustrate and explain graphically.
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