Do last 3 sub part of the question 1. Assume that Ms. Desdimona, the owner, and manager of the Fine Duplicating Servicelocated near your university and she is seeking to fill a vacant position. Should she be moreconcerned with the average product of labor or the marginal product of labor for the lastperson hired? If she observes that average product is just beginning to decline, should shehire any more workers? She estimates that the additional workers would generate thefollowing output. What does this situation imply about the marginal product of your lastworker hired? State how the law of diminishing returns is reflected in the shape of the totalproduct curve and indicate the relationship between diminishing marginal return and thestages of the production. How would you determine the various stages of production fromthis table? Explain intuitively what might cause the marginal product of labor to benegative.Workers Hired14578Total Product (Q)12223036404037326,3.2.

Workers hired Total Product Average Product Marginal Product 0 0 -- -- 1 12 12 12 2 22 11 10…

hire any more workers? She estimates that the additional workers would generate th following output. What does this situation imply about the marginal product of your las worker hired? State how the law of diminishing returns is reflected in the shape of the tota product curve and indicate the relationship between diminishing marginal return and th stages of the production. How would you determine the various stages of production fror this table? Explain intuitively what might cause the marginal product of labor to b negative. Workers Hired 1 2 3 4 5 6. 7 8 Total Product (Q) 12 22 30 36 40 40 37 32

hire any more workers? She estimates that the additional workers would generate th following output. What does this situation imply about the marginal product of your las worker hired? State how the law of diminishing returns is reflected in the shape of the tota product curve and indicate the relationship between diminishing marginal return and th stages of the production. How would you determine the various stages of production fror this table? Explain intuitively what might cause the marginal product of labor to b negative. Workers Hired 1 2 3 4 5 6. 7 8 Total Product (Q) 12 22 30 36 40 40 37 32

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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