Question

The production process is such that each extra worker produces two extra units of output up to six workers. After six workers, each extra worker produces one extra output up to 10 workers. After 10 workers, each extra worker does not contribute to the output.
a) Draw the production function

b) Draw the marginal product of labor curve c) Draw the average cost curve

Answer 1

(a)

Production schedule as follows.

Worker (L)	Output (Q)
1	2
2	4
3	6
4	8
5	10
6	12
7	13
8	14
9	15
10	16
11	16
12	16
13	16
14	16
15	16

Graph:

(b) MPL = Change in Q / Change in L

MPL is computed as follows.

Worker (L)	Output (Q)	MPL
1	2	2
2	4	2
3	6	2
4	8	2
5	10	2
6	12	2
7	13	1
8	14	1
9	15	1
10	16	1
11	16	0
12	16	0
13	16	0
14	16	0
15	16	0

Graph:

(c) Average cost graph