Computing onset of diminishing marginal product

Reference no: EM1373721

The number of repairs manufactured by a computer repair shop depends on the number of employees as follows:

# of workers / # of Repairs per week
0 0
1 8
2 20
3 35
4 45
5 52
6 57
7 60

Assume that all inputs (office space, telephone, utilities) other than labor are fixed in the short run.

(a) Add two additional columns to the table, and enter the marginal product and average product for each number of workers?
(b) Over what range of labor input are there increasing returns to labor? Diminishing returns to labor? Negative returns to labor?
(c) 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?
(d) 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?

Reference no: EM1373721

Questions Cloud

Describe the consequences of government overspending : When watching at our economy, you will determine that government expanding is very important to our overall output of our economy.

Determining efficient level of labour : A medium sized bakery has just opened in Slovakia. A loaf of bread is currently selling for fourteen koruna over and above the cost of intermediate goods

Comparing the unemployment rate : A spike in unemployment rate - the largest in more than 2-decades - increased new concerns Friday that a weak labor outlook, high oil prices and continuing woes in housing and credit markets are leading the United States economy into a painful recess..

Analyzing profits : Realizing that the major function of benefit is to allocate resources according to consumer preferences, why are some groups in United States extremely critical of companies that earn increasing benefits

Computing onset of diminishing marginal product : The number of repairs manufactured by a computer repair shop depends on the number of employees as follows:

Explain difference between push and pull systems : Explain the difference between push and pull systems and what are the main disadvantages of MRP method?

Harris todaro model : Assume the rural wage is $1 each day. Urban modern sector employment can be obtained with .25 probability and pays $3 each day. The urban traditional sector pays forty cents each day.

Determine equilibrium price level and real output : Assume that the aggregate demand and supply schedules for a hypothetical economy are as demonstrate:

Prepare a proposal for rfp project : Prepare a proposal for "RFP Project" and need to develop or explain more the "NYSCE" file according to file Design Activities- Review the system requirements, determine system development options and create the Systems Requirement Document

User Account

All Pages