Calculating marginal also average product of labor.
Suppose which a chair manufacturer is producing in the short run (with its existing plant also equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
|
Number of Workers
|
Number of chairs
|
|
1
|
10
|
|
2
|
18
|
|
3
|
24
|
|
4
|
28
|
|
5
|
30
|
|
6
|
28
|
|
7
|
25
|
a) Compute the marginal also average product of labor for this production function.
b) Does this production function exhibits diminishing returns to labor? Elucidate.
c) Elucidate intuitively Illustrate what might cause the marginal product of labor to become negative?