The number of oil changes conducted by a service station depends on the number of workers as shown in the table below. Assume that all inputs (service bins, telephone, and utilities) other than labor are fixed in the short run. In the table below, enter the marginal product and average product for each number of workers. (Round your responses to two decimal placss.) Number of Number of Oil Marginal Product Average Product Workers Changes 1 2 24 3 48 4 64 5 72 6 76 7 78 Over what range of labor input are there increasing returns to labor? diminishing returns to labor? negative returms to labor? O A. Returms to labor are increasing for workers 1 through 7 (with no diminishing or negative returns to labor). O B. Retums to labor are increasing for workers 1,2, and 3, diminishing for workers 4, 5, and 6, and negative for worker 7. C. Retums to labor are increasing for workers 1,2, 3, and 4, while diminishing for workers 5 through 7 (with no negative retums to labor). O D. Returns to labor are increasing for workers 1,2, and 3, while diminishing for workers 4 through 7 (with no negative returns to labor). OE. Returns to labor are increasing for workers 1 and 2, while diminishing for workers 3 through 7 (with no negative returms to labor). Over what range of labor Input is marginal product greater than average product? What is happening to average product as employment Increases over this range? Marginal product is greater than average product from worker to worker which causes the average product of labor to (Enter your responses as whole numbers.) Over what range of labor input is marginal product smaller than average product? What is happening to average product as employment increases over this range? Marginal product is less than average product from worker to worker which causes the average product to (Enter your responses as whole numbers.)
The number of oil changes conducted by a service station depends on the number of workers as shown in the table below. Assume that all inputs (service bins, telephone, and utilities) other than labor are fixed in the short run. In the table below, enter the marginal product and average product for each number of workers. (Round your responses to two decimal placss.) Number of Number of Oil Marginal Product Average Product Workers Changes 1 2 24 3 48 4 64 5 72 6 76 7 78 Over what range of labor input are there increasing returns to labor? diminishing returns to labor? negative returms to labor? O A. Returms to labor are increasing for workers 1 through 7 (with no diminishing or negative returns to labor). O B. Retums to labor are increasing for workers 1,2, and 3, diminishing for workers 4, 5, and 6, and negative for worker 7. C. Retums to labor are increasing for workers 1,2, 3, and 4, while diminishing for workers 5 through 7 (with no negative retums to labor). O D. Returns to labor are increasing for workers 1,2, and 3, while diminishing for workers 4 through 7 (with no negative returns to labor). OE. Returns to labor are increasing for workers 1 and 2, while diminishing for workers 3 through 7 (with no negative returms to labor). Over what range of labor Input is marginal product greater than average product? What is happening to average product as employment Increases over this range? Marginal product is greater than average product from worker to worker which causes the average product of labor to (Enter your responses as whole numbers.) Over what range of labor input is marginal product smaller than average product? What is happening to average product as employment increases over this range? Marginal product is less than average product from worker to worker which causes the average product to (Enter your responses as whole numbers.)
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 8P
Related questions
Question
6
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning