2 The following diagram depicts the production function of t

2. The following diagram depicts the production function of the farmers, where diminishing average product of labor is assumed. At A the average product of labor is 500,000/800 625 kg of grain per farmer. At B the average product of labor is 732,000/1,600 458 kg of grair per farmer. If you know that the grain output for 2,800 farmers is 894,000kg, then which of the following statements are True (T) or False (F)? 900 800 600 50 400 300 200 100 .. 400 800 1,200 1,600 2,000 2,400 2,800 Number of farmers When the labor input is 2,800, the average product of labor is 300 kg. curve, indicating that the average product of labor is decreasing. diminishing average product of labor. farmers instead of one, the average output increases as they efficiently share the a. b. The slopes of the rays from the origin to the production function decrease along the c. If the production function curve is an upward-sloping straight line, then there is no d. It is possible that initially there are economies of scale (for example, when there are two workload.

Solution

Answer- the ans is b.

Thus slope from origin to any point on production function represent average productivity of labor and thus slopes decreases in above dig.Thus avg product of labor decreases.