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Summary: The Production Process: The Behavior of Profit-Maximizing Firms GA inconsistency. 2.5 The number of oil changes conducted by a service station depends on the
Summary: The Production Process: The Behavior of Profit-Maximizing Firms GA inconsistency. 2.5 The number of oil changes conducted by a service station depends on the number of workers as follows: 9 0 lili Number of Workers Number of Oil Changes [Per Day) 0 NJ 14 AA 26 40 52 58 61 46 Hide E) (0) egeoo Hlde SWMHMM nmmmmanmngrm Assume that all inputs (service bins, telephone, and utilities) other than labor are xed in the short run. a. Add two additional columns to the table and enter the marginal product and average product for each number of workers. 19. Over what range of labor input are there increasing returns to labor? diminishing returns to labor? negative returns to labor? c. Over what range of labor input is marginal product greater than average product? What is happening to average product as employment increases over this range? d. Over what range of labor input is marginal product smaller than average product? What is happening to average product as employment increases over this range
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