The following table presents data on the output produced at different levels of labour inputs. Labour input Marginal product of Average product of labour (MPL) Output (workers per week) (goods per week) labour (APL) 5n 2. 12 20 4. 25 5n 27 28 7. 26 i) Calculate the marginal product of labour (MPL) and the average product of labour (APL) to complete the table and then plot their curves. i) At approximately what level of labour input does the law of diminishing returns begin to operate? Explain why you have increasing returns up to that point and why diminishing returns eventually set in. ii) Give 3 determinants of an increase in the demand for the factor labor.
The following table presents data on the output produced at different levels of labour inputs. Labour input Marginal product of Average product of labour (MPL) Output (workers per week) (goods per week) labour (APL) 5n 2. 12 20 4. 25 5n 27 28 7. 26 i) Calculate the marginal product of labour (MPL) and the average product of labour (APL) to complete the table and then plot their curves. i) At approximately what level of labour input does the law of diminishing returns begin to operate? Explain why you have increasing returns up to that point and why diminishing returns eventually set in. ii) Give 3 determinants of an increase in the demand for the factor labor.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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