Question
Problem 1 : The table below shows the output of bagels produced per week as more and more workers are added to the production facility.
Problem 1: The table below shows the output of bagels produced per week as more and more workers are added to the production facility.
Number of Workers | Number of Bagels | |
Per Period | Per Period | |
0 | 0 | |
1 | 300 | |
2 | 800 | |
3 | 1800 | |
4 | 3000 | |
5 | 4000 | |
6 | 4800 | |
7 | 5400 | |
8 | 5200 | |
9 | 5000 |
Step 1. Add a column on the right-hand side of the table and input the Marginal Product for each consecutive worker hired.
Step 2. Identify the number of workers associated with increasing marginal returns.
Step 3. Identify the number of workers associate with diminishing marginal returns.
Step 4. Identify the number of workers associate with negative marginal returns.
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