The table below shows the weekly relationship between output and number of workers for a factory with a fixed size of plant.

Number of Workers

Output

0

0

1

50

2

110

3

300

4

450

5

590

6

665

7

700

8

725

9

710

10

705

a.Calculate the marginal product of labor for each additional worker hired.

b.At what point does diminishing returns set in?

c.Calculate the average product of labor for each output level.

d.Find the three stages of production and show them graphically too.

e.If the wage rate is $500 and the price of output is $5, how many workers should the firm hire?