Problem
Watch this YouTube video: "Micro: Unit 3.1 -- Marginal Product and Diminishing Returns".
Discuss about marginal product and diminishing returns by answering the questions below. Provide long and clear explanation.
I. Combine the concepts of inputs, costs, and outputs.
II. What is total product, average product, and marginal product?
III. What is "the law pf diminishing marginal returns?"
IV. Why does the number of workers do not always equate to increase in production? Provide example applying the law of diminishing marginal returns.
V. What is diminishing returns? Give example, apply it in a situation.
VI. Discuss the stages of returns.
VII. What does it mean when the marginal product reaches its apex? How about when it reaches zero?
VIII. What can you conclude in the topic discussed? What would be the best decision to make by the companies in making decision regards to their production?