It was noted in class that a production function identifies the maximum amount of output that can be obtained from a given amount of input. That is, workers are assumed not to shirk. If workers were to shirk, then:
i. the level of output per period will be less than the level of output if workers do not shirk
ii. MPL and APL will be greater than MPL and APL if workers do not shirk
iii. the total labor costs required to produce a given level of output will be greater than if workers do not shirk but total fixed costs will be unaffected
A-i
B-ii
C-iii
D-i and ii
E-i and iii
F-ii and iii
G-i, ii, and iii