Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week. Which of the following statements best represents the idea behind the marginal product of labor ( MPL )? When Tim hires more workers, he can mow more lawns per week, but at a decreasing rate. If Tim hires twice as many workers per week, he can mow twice as many lawns per week. If Tim buys one more lawn mower, he can mow 13 more lawns per week. If Tim hires an additional worker per week, he can mow 11 more lawns per week. The following graph portrays the weekly total product curve for lawn mowing given a fixed amount of capital and varying labor inputs. (Note: Each black point (plus symbol) represents a point on the total product curve.) 100 50 40 2 2 2 2 2 2 2 2 2 20 OUTPUT (Lawns mowed per week) メーメー Total Product 0 2 3 4 5 6 7 8 10 LABOR (Workers per week) ? Complete the following table by computing the MPL for different quantities of workers. For each of the quantities, Tim is determining the MPL between hiring this amount of labor or one unit more. Labor MPL (Number of workers per week) (Lawns mowed per week) From 3 to 4 workers From 5 to 6 workers From 8 to 9 workers True or False: This total product curve exhibits diminishing marginal product of labor. True False
Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to determine the productivity gained from hiring various numbers of workers per week. Which of the following statements best represents the idea behind the marginal product of labor ( MPL )? When Tim hires more workers, he can mow more lawns per week, but at a decreasing rate. If Tim hires twice as many workers per week, he can mow twice as many lawns per week. If Tim buys one more lawn mower, he can mow 13 more lawns per week. If Tim hires an additional worker per week, he can mow 11 more lawns per week. The following graph portrays the weekly total product curve for lawn mowing given a fixed amount of capital and varying labor inputs. (Note: Each black point (plus symbol) represents a point on the total product curve.) 100 50 40 2 2 2 2 2 2 2 2 2 20 OUTPUT (Lawns mowed per week) メーメー Total Product 0 2 3 4 5 6 7 8 10 LABOR (Workers per week) ? Complete the following table by computing the MPL for different quantities of workers. For each of the quantities, Tim is determining the MPL between hiring this amount of labor or one unit more. Labor MPL (Number of workers per week) (Lawns mowed per week) From 3 to 4 workers From 5 to 6 workers From 8 to 9 workers True or False: This total product curve exhibits diminishing marginal product of labor. True False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that Tim runs his own lawn care service and that his firm is competitive in the lawn care
industry. He has a fixed number of tools that can be used to maintain a yard, but he needs to
determine the productivity gained from hiring various numbers of workers per week.
Which of the following statements best represents the idea behind the marginal product of labor (
MPL )?
When Tim hires more workers, he can mow more lawns per week, but at a decreasing
rate.
If Tim hires twice as many workers per week, he can mow twice as many lawns per
week.
If Tim buys one more lawn mower, he can mow 13 more lawns per week.
If Tim hires an additional worker per week, he can mow 11 more lawns per week.
The following graph portrays the weekly total product curve for lawn mowing given a fixed amount
of capital and varying labor inputs. (Note: Each black point (plus symbol) represents a point on
the total product curve.)
100
90
во
70
60
50
40
30
20
10
xxxx_
Total Product
°
0
1
2
4
5
7
8
10
LABOR (Workers per week)
Complete the following table by computing the MPL for different quantities of workers. For each of
the quantities, Tim is determining the MPL between hiring this amount of labor or one unit more.
Labor
MPL
(Number of workers per week) (Lawns mowed per week)
From 3 to 4 workers
From 5 to 6 workers
From 8 to 9 workers
True or False: This total product curve exhibits diminishing marginal product of labor.
True
False
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