Question
Use the following information to answer all sub-sections of question 3. Yolanda runs a fish farm. When she employs 1 person, she produces 1,000 fish
Use the following information to answer all sub-sections of question 3.
Yolanda runs a fish farm. When she employs 1 person, she produces 1,000 fish a week. When she hires a second worker, her total product doubles. Her total product doubles again when she hires a third worker. When she hires a fourth worker, her total product increases but by only 1,000 fish. Yolanda pays $1,000 a week for equipment and $500 a week to each worker she hires.
a)Construct Yolanda's marginal product and average product schedules by filling the table below. Over what range of workers does Yolanda experience increasing marginal returns?
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