what is the marginal physical product of labor marginal prod

what is the marginal physical product of labor? (marginal product)

What is a short run question for a business firm?

the marginal cost curve intersects the average total cost curve

if cost per unit is rising with larger plant size, in the long run average cost curve

If MPL/PL > MPK/PK, a profit-maximizing firm should

(MPL is marginal product of labor, MPK is marginal product of capital, PL is price of labor, PK is price of capital)

the additional output from adding one more worker

Solution

Q1. Answer is The additional output from adding one more worker. Q2. Answer is How should the ffirm schedule workers Q3. Answer is At the minimum of Average total cost Q4. Answer is We are in the diseconomies of scale. Q5. Answer is Use more labour. This is to be equilibrium the equation must be equal. Therefore, the Marginal productivity of labour need to be diminish. Which is possible thorugh more emplyement of labour.