Do you think these are short-run (at least one fixed resource) or long-run (all variable resources) production functions? Explain.
Sort the following into the stages of the production function. This is a tough one since some of the labels will be used more than once! I recommend drawing out ALL 3 graphs on a white board or paper, or reference your prior drawings to get a good handle on this!
AP is increasing
MP is decreasing
TP is positive
AP is decreasing
MP is increasing
TP undergoes a rate change
MP is negative
TP increasing at a fast rate
TP increasing but at a slower rate
AP is positive
TP is decreasing
MP is at a max
TP is at a maximum
MP is positive
MP = 0
STAGE I. Increasing Marginal Returns
Between Increasing Marginal Returns & Diminishing Marginal Returns (No inc or dec for a single point)
STAGE II. Diminishing Marginal Returns
Between Diminishing Marginal Returns & Negative Marginal Returns (No inc or dec for a single point)
STAGE III. Negative Marginal Returns