Tonys hat store

1.

How many hats can three workers make?

2.

How many additional hats are made as a result of hiring the 5

th

worker?

3.

On average, how many hats can 2 workers make?

4.

At what point does margi

nal product diminish?

5.

Does total product decrease when marginal product falls?

6.

When marginal product is zero, what happens to total product?

7.

The hiring of which worker leads to 20 additional hats being produced?

8.

How many workers does it take to make

60 hats?

9.

What is the result of hiring the 7

th

worker? Why?

10.

What causes increasing marginal returns?

11.

How does MP affect AP? How is this demonstrated by the curve?