Digging clams by hand in Sunset Bay requires only labor input. The total number of clams obtained

Question:

Digging clams by hand in Sunset Bay requires only labor input. The total number of clams obtained per hour (q) is given by

q = 100 √L

Where L is labor input per hour.

a. Graph the relationship between q and L.

b. What is the average productivity of labor (output per unit of labor input) in Sunset Bay? Graph this relationship and show that output per unit of labor input diminishes for increases in labor input.

c. The marginal productivity of labor in Sunset Bay is given by

MPL = 50. /√L

Graph this relationship and show that labor’s marginal productivity is less than average productivity for all values of L. Explain why this is so.


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Related Book For  book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

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