Why does the marginal product of labor start to decrease after a certain number of workers are hired? What makes the difference?a) The variable input continues to increase while the fixed input is fixed.b) Both the variable and the fixed inputs are increasing at the same rate. is it a or b? Marginal Product 4 WorkerBaxter, FoodTruck OwnerMarginal Product 4 WorkersGenerally speaking, it has to do with fixed and variable inputs.Number of WorkersNumber of LunchesMarginal Product of Labor151712Rochelle33518A fixed input is an input to production that does not change – inthis case your taco truck. No matter how many tacos you cook,you only use one truck.442740RochelleA variable input is an input to production that can change - inthis case the number of workers you hire. You can vary thenumber of workers you hire to change the number of tacos youmake.RochelleOkay, so why does the marginal product of labor start to decrease aftera certain number of workers hired? What makes the difference?Baxter, FoodTruck OwnerThe variable input continues to increase while the fixed input is fixed.Both the variable and the fixed inputs are increasing at the same rate.

Marginal Product of labour basically means the change in total output, due to one unit change in…

Why does the marginal product of labor start to decrease after a certain number of workers are hired? What makes the difference? a) The variable input continues to increase while the fixed input is fixed. b) Both the variable and the fixed inputs are increasing at the same rate. is it a or b?

Why does the marginal product of labor start to decrease after a certain number of workers are hired? What makes the difference? a) The variable input continues to increase while the fixed input is fixed. b) Both the variable and the fixed inputs are increasing at the same rate. is it a or b?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 8P

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Question

Why does the marginal product of labor start to decrease after a certain number of workers are hired? What makes the difference?

a) The variable input continues to increase while the fixed input is fixed.

b) Both the variable and the fixed inputs are increasing at the same rate.

is it a or b?

Marginal Product 4 Worker
Baxter, Food
Truck Owner
Marginal Product 4 Workers
Generally speaking, it has to do with fixed and variable inputs.
Number of Workers
Number of Lunches
Marginal Product of Labor
1
5
17
12
Rochelle
3
35
18
A fixed input is an input to production that does not change – in
this case your taco truck. No matter how many tacos you cook,
you only use one truck.
4
42
7
40
Rochelle
A variable input is an input to production that can change - in
this case the number of workers you hire. You can vary the
number of workers you hire to change the number of tacos you
make.
Rochelle
Okay, so why does the marginal product of labor start to decrease after
a certain number of workers hired? What makes the difference?
Baxter, Food
Truck Owner
The variable input continues to increase while the fixed input is fixed.
Both the variable and the fixed inputs are increasing at the same rate.

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