Suppose that Yakov runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week.

1 - Which of the following statements best represents the idea behind the marginal physical product of labor (MPL)?

a - If Yakov hires an additional worker per week, he can mow 11 more lawns per week.

b - If Yakov buys one more lawn mower, he can mow 13 more lawns per week.

c - When Yakov hires more workers, he can mow more lawns per week, but at a decreasing rate.

d - If Yakov hires twice as many workers per week, he can mow twice as many lawns per week.

The following graph portrays the weekly production function for lawn mowing(f(K,L))f?K,Lgiven a fixed amount of capital (KK) and varying labor inputs (LL). (Note: Each black point (plus symbol) represents a point on the production function.)

See Graph attached. Coordinates are as follows: 1,22 / 2,34 / 3,43 / 5,56 / 6,61 / 7.65 / 8,68 / 9,70

2 - Complete the following table by computing the MPL for different quantities of workers. For each of the quantities, Yakov is determining the MPL between hiring this amount of labor or one unit more.

Labor (Number of workers per week) MPL (Lawns mowed per week)

From 3 to 4 workers

From 6 to 7 workers

From 8 to 9 workers

3 - True or False: This production function does not exhibit diminishing marginal physical product of labor.

Please note that I am more interested for question#1 in knowing why the answer is A and not C. Thanks.

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