The following table shows the relationship between workers and output for a small factory in the short run, with capital held constant. Find the marginal product of labor (MP) Workers Output MP 1 40 40 88 48 3 141 53 4 183 42 201 18 For this firm, diminishing marginal returns set in after worker is employed.
The following table shows the relationship between workers and output for a small factory in the short run, with capital held constant. Find the marginal product of labor (MP) Workers Output MP 1 40 40 88 48 3 141 53 4 183 42 201 18 For this firm, diminishing marginal returns set in after worker is employed.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.8P
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Transcribed Image Text:The following table shows the relationship between workers and output for a small factory in the short run, with capital held constant. Find the marginal product of
labor (MP).
Workers
Output
МP
0
1
40
40
2
88
48
3
141
53
4
183
42
5
201
18
For this firm, diminishing marginal returns set in after worker
is employed.
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