Question

Labor Units (number of workers)	Total Product (cookies produced per hour)	Marginal Product of Labor	Average Product of Labor
0	0	---	---
1	4
2	12
3	24
4	40	16	10
5	60
6	75
7	84
8	86	2

Use the information in the Table above to answer the following questions.

a. Complete the empty cells in the Table [13 points]

b. At what level of employment(number of workers) does diminishing marginal product set in? [3 points]

Answer 1

a)

Labor Units (number of workers)	Total Product (cookies produced per hour)	Marginal Product of Labor	Average Product of Labor
0	0	---	---
1	4	4	4
2	12	8	6
3	24	12	8
4	40	16	10
5	60	20	12
6	75	15	12.5
7	84	9	12
8	86	2	10.75

the marginal product of n labor=(total product of n labor - the total product of p labor)/(n-p)............(n>p)

APL=TP/L

b)

at 7th worker

the MPL decreases from 6th to 7th, that shows the diminishing product of labor