(Figure: Determining Marginal Returns) Based on both the table and the figure, adding a thirdworker leads tomarginal returns.Average Product and Marginal ProductOutput12314Labor5617121086489100-2BAYconstant2TotalProductO negative51221314048545757increasing54diminishing4MP579109863036WorkersAP5677.75887.717.126.335.481012

Total Product of Labor(TPL) refers to the overall output or quantity(Q) of services or items…

(Figure: Determining Marginal Returns) Based on both the table and the figure, adding a third worker leads to marginal returns. Average Product and Marginal Product Output 12 10 86 4 20 24 2 4 6 Workers 8 10 12

(Figure: Determining Marginal Returns) Based on both the table and the figure, adding a third worker leads to marginal returns. Average Product and Marginal Product Output 12 10 86 4 20 24 2 4 6 Workers 8 10 12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(Figure: Determining Marginal Returns) Based on both the table and the figure, adding a third
worker leads to
marginal returns.
Average Product and Marginal Product
Output
1
2
3
14
Labor
5
6
17
12
10
8
6
4
8
9
10
0
-2
BAY
constant
2
Total
Product
O negative
5
12
21
31
40
48
54
57
57
increasing
54
diminishing
4
MP
5
7
9
10
9
8
6
3
0
3
6
Workers
AP
5
6
7
7.75
8
8
7.71
7.12
6.33
5.4
8
10
12

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36) 36) Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays her employees $60 per day. She also incurs a fixed cost of $120 per day. Calculate Vipsana's average fixed cost per day when she produces 50 gyros using two workers? A) $2.00 B) $2.40 C) $4.40 D) $6.80 Page Ref: 369-370
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