The following table shows the quantity of workers and total output for a local pizza shop. Use the table below to answer the following questions.
a) When the owner hires 4 workers, what is the average product of labor?
b) What is the marginal product of the fifth worker?
c) If the marginal product of the second worker is 6, what is the total number of pizzas produced when 2 workers are hired?
d) Assuming that the marginal product of the second worker is 6, with which worker hired does the law of diminishing returns set in?
Quantity of Workers
Total Output
0
0
1
5
2
a
3
19
4
24
5
28
6
26
The following table shows the quantity of workers and total output for a local pizza shop. Use the table below to answer the following questions.
a) When the owner hires 4 workers, what is the average product of labor?
b) What is the marginal product of the fifth worker?
c) If the marginal product of the second worker is 6, what is the total number of pizzas produced when 2 workers are hired?
d) Assuming that the marginal product of the second worker is 6, with which worker hired does the law of diminishing returns set in?
| Quantity of Workers | Total Output |
| 0 | 0 |
| 1 | 5 |
| 2 | a |
| 3 | 19 |
| 4 | 24 |
| 5 | 28 |
| 6 | 26 |
Related textbook solutions
Related questions
|
Quality of labor (workers) |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
|
Total product (units per hour) |
0 |
2 |
5 |
9 |
15 |
18 |
17 |
The table above shows the total product schedule for The X Firm. Decreasing marginal returns occur with the ________ worker because ________.
a. 6th; output starts to decline.
b. 6th; the marginal product of labor is greater than the average product of labor.
c. 5th; the marginal product of labor for the 5th worker is less than the marginal product of the 4th worker.
d. 4th; output reaches is maximum.
e. 5th; the average product of labor is also declining.
You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
| No of Workers | Total Labor Cost | Output | Total Revenue |
| 1 | $145 | 100 | $190 |
| 2 | $290 | 105 | $480 |
| 3 | $435 | 111 | $840 |
| 4 | $580 | 120 | $1320 |
| 5 | $725 | 125 | $1650 |
| 6 | $870 | 129 | $1780 |
| 7 | $1015 | 131 | $1800 |
a) What is the marginal product of the third worker?
b) What is the marginal revenue product of the fourth worker?
c) What is the marginal cost of the sixth worker?
d) Based on your knowledge of marginal analysis, how many workers should you hire? Explain your answer.
