Question
Asked Dec 3, 2019
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The short-run production function for a manufacturer of flash memory drives is shown in the table below. Based on this information, answer the following questions.

Input of Labor
(workers per week)

Total Output of
Flash Memory Drives

0

0

1

25

2

60

3

85

4

105

5

115

6

120

a.   Calculate the average product at each quantity of labor.

b.   Calculate the marginal product of labor at each quantity of labor.

c.   At what point does marginal product begin to diminish?

 

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Expert Answer

Step 1

a) Average product is the output produced per unit of labor.

Formula for calculating average product:

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ТР АР. АР-

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Step 2

Step3:

b) Marginal product can be calculated as the change in total output on addition of one more unit of labor input.

The formula for calculating marginal product:

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MP - ТР, — ТР, п-

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Step 3

The following table shows average product and ma...

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Input of labor (Q) Total production (ТР) АР МP 25 (25/1) 25 (25-0) 25 1 30 (60/2) 2 60 35 (60-25) 85 28.33 105 26.25 20 5 23 10 115 120 5 25 20 4

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