Consider firms per-period production process

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Consider a firms per-period (e.g., hourly) production process. If it employs 1 unit of labor, then 8 units of output will be produced; if it employs 2 units of labor, then 12 units of output will be produced; and if it employs 3 units of labor, then 15 units of output will be produced. It follows that:

total output is increasing at an increasing rate and the marginal product of labor is decreasing

total output is increasing at an increasing rate and the marginal product of labor is increasing

total output is increasing at an increasing rate and the marginal product of labor is constant

total output is increasing at a decreasing rate and the marginal product of labor is increasing

total output is increasing at a decreasing rate and the marginal product of labor is decreasing

total output is increasing at a decreasing rate and the marginal product of labor is constant

Reference no: EM131094762

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