Question

a) The table below shows the production schedule of a jeans manufacturing unit. Calculate the marginal product of labor and discuss whether it follows the law of diminishing marginal product. Explain why diminishing relationship exist. Draw a graph showing the relationship between the total output and marginal output.

Number of workers	Output(’000 numbers per week)	Marginal product
0	0
1	100
2	150
3	175
4	190
5	200

Answer 1

Number of workers	Output(’000 numbers per week)	Marginal product
0	0
1	100	100
2	150	50
3	175	25
4	190	15
5	200	10

Yes we can observe that the law of diminishing marginal productivity, as with the increase in input or no of workers, the marginal product starts to decrease. This is observed in a situation when the advantage is gained in a factor of production, the productivity starts to decline after reaching a maximum level