Does the law of diminishing marginal returns to labor apply to the production process?

A firm that manufactures office desks has the following production function in the short run: Q = 40 Show more A firm that manufactures office desks has the following production function in the short run: Q = 400 L0.8 K0.5 where Q = the quantity of chairs produced in a month L = the amount of labor (hours of work) used in a month K = the amount of capital (building machines equipment) used. Assume that in the short run L = 1000 and K = 100. 1. What is the quantity produced if L = 1000 and K = 100? (5 points) 2. What is the quantity produced if L = 1200 and K = 100? (5 points) 3. What is the quantity produced if L = 1400 and K = 100? (5 points) 4. Does the law of diminishing marginal returns to labor apply to the production process? Why? Why not? Show less

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