A cubic specification for a short-run production function is appropriate when the scatter diagram indicates
A)an S-shaped total product curve.
B)marginal product of labor falls throughout the range of labor usage.
C)total product is decreasing throughout the range of labor usage.
D)an S-shaped marginal product of labor curve.
E)a $\text { U }$ -shaped marginal product of labor curve (MP first falls and then rises as labor usage increases.

Question

Quizplus · Accepted Answer

A cubic specification for a short-run production function is appropriate when the scatter diagram indicates an S-shaped total product curve, as it can capture the increasing, then decreasing, and then again increasing marginal returns to a factor of production.

A Cubic Specification for a Short-Run Production Function Is Appropriate U \text { U } U

A Cubic Specification for a Short-Run Production Function Is Appropriate $\text { U }$