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Imagine that a rm produces good X with just two factors: capital, which is fixed in supply; an labour, which is variable. The effect on

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Imagine that a rm produces good X with just two factors: capital, which is fixed in supply; an labour, which is variable. The effect on total output [TPP] of increasing the number of workers is shown in column [2) of the table below. {We will ll in columns [3) and [4} later.) The relationship between the output (total physical product) of good X and the number of workers employed No. ofbrkers 7%.?\" Ag}: JEL '3 o 1 1D ....... 2 2E ....... 3 41 ....... 4 52 ....... 5 t]

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