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The table sets out Sue's Surfboard total product schedule Labour Output (Surfboard per week) (workers per week) 1 30 2 70 3 120 4 160

The table sets out Sue's Surfboard total product schedule

Labour Output

(Surfboard per week) (workers per week)

1 30

2 70

3 120

4 160

5 190

6 210

7 220

a)Calculate the average product and the marginal product of labour. Draw the two curves on the same graph.

b)Over what output range does Sue's Surfboard enjoy the benefit of increased specialization and division of labour?

c)Over what output range does the firm experience diminishing marginal return of labour?

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