Question: 9). Explain how it is possible for marginal product to fall while average product is rising. labor and capital: 10. Sue owns a factory which

9). Explain how it is possible for marginal product to fall while average product is rising.

labor and capital: 10. Sue owns a factory which can produce 200 ceramic plates using the following five combinations of Technology Units of Capital (K) Units of Labor (L) Total Cost A 20 B 15 C 11 D 12 8 E 17 6 If the price of capital is $8 per unit and the price of labor is $6 per unit, calculate the total cost of producing 200 ceramic plates under each technology. Which technology would a profit-maximizing firm use? Focus

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