Question

Graph the following table.

Number of Workers	Total Output
0	0
1	20
2	60
3	150
4	260
5	350
6	420
7	455
8	420
9	375
10	300

A. What is the marginal product and average product at each level of production?

B. Graph marginal product and average product.

C. Label the areas on the graph of increasing marginal productivity, diminishing marginal productivity, and diminishing absolute productivity.

Answer 1

Number of workers	Total Output	Marginal Output	Average Output	Productivity
0	0	-	-
1	20	20	20	Increasing Marginal Productivity
2	60	40	30	Increasing Marginal Productivity
3	150	90	50	Increasing Marginal Productivity
4	260	110	65	Decreasing Marginal Productivity
5	350	90	70	Decreasing Marginal Productivity
6	420	70	70	Decreasing Marginal Productivity
7	455	35	65	Decreasing Marginal Productivity
8	420	-35	52.5	Negative Marginal Productivity
9	375	-45	41.6	Negative Marginal Productivity
10	300	-75	30	Negative Marginal Productivity