The number of oil changes conducted by a service station depends on the number of workers as shown in the table below. Assume that all inputs (service bins, telephone, and utilities) other than labor are fixed in the short run. In the table below, enter the marginal product and average product for each number of workers. (Round your responses to two decimal placss.) Number of Number of Oil Marginal Product Average Product Workers Changes 1 2 24 3 48 4 64 5 72 6 76 7 78 Over what range of labor input are there increasing returns to labor? diminishing returns to labor? negative returms to labor? O A. Returms to labor are increasing for workers 1 through 7 (with no diminishing or negative returns to labor). O B. Retums to labor are increasing for workers 1,2, and 3, diminishing for workers 4, 5, and 6, and negative for worker 7. C. Retums to labor are increasing for workers 1,2, 3, and 4, while diminishing for workers 5 through 7 (with no negative retums to labor). O D. Returns to labor are increasing for workers 1,2, and 3, while diminishing for workers 4 through 7 (with no negative returns to labor). OE. Returns to labor are increasing for workers 1 and 2, while diminishing for workers 3 through 7 (with no negative returms to labor). Over what range of labor Input is marginal product greater than average product? What is happening to average product as employment Increases over this range? Marginal product is greater than average product from worker to worker which causes the average product of labor to (Enter your responses as whole numbers.) Over what range of labor input is marginal product smaller than average product? What is happening to average product as employment increases over this range? Marginal product is less than average product from worker to worker which causes the average product to (Enter your responses as whole numbers.)
The number of oil changes conducted by a service station depends on the number of workers as shown in the table below. Assume that all inputs (service bins, telephone, and utilities) other than labor are fixed in the short run. In the table below, enter the marginal product and average product for each number of workers. (Round your responses to two decimal placss.) Number of Number of Oil Marginal Product Average Product Workers Changes 1 2 24 3 48 4 64 5 72 6 76 7 78 Over what range of labor input are there increasing returns to labor? diminishing returns to labor? negative returms to labor? O A. Returms to labor are increasing for workers 1 through 7 (with no diminishing or negative returns to labor). O B. Retums to labor are increasing for workers 1,2, and 3, diminishing for workers 4, 5, and 6, and negative for worker 7. C. Retums to labor are increasing for workers 1,2, 3, and 4, while diminishing for workers 5 through 7 (with no negative retums to labor). O D. Returns to labor are increasing for workers 1,2, and 3, while diminishing for workers 4 through 7 (with no negative returns to labor). OE. Returns to labor are increasing for workers 1 and 2, while diminishing for workers 3 through 7 (with no negative returms to labor). Over what range of labor Input is marginal product greater than average product? What is happening to average product as employment Increases over this range? Marginal product is greater than average product from worker to worker which causes the average product of labor to (Enter your responses as whole numbers.) Over what range of labor input is marginal product smaller than average product? What is happening to average product as employment increases over this range? Marginal product is less than average product from worker to worker which causes the average product to (Enter your responses as whole numbers.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The number of oil changes conducted by a service station depends on the number of workers as shown in the table below. Assume that all inputs (service bins, telephone, and utilities) other than labor are fixed in the short run.
In the table below, enter the marginal product and average product for each number of workers. (Round your responses to two decimal places.)
Number of
Number of Oll
Marginal
Product
Average
Product
Workers
Changes
8
24
48
64
72
76
78
Over what range of labor input are there increasing returns
labor? diminishing returns to labor? negative retums to labor?
O A. Relums to labor are increasing for workers 1 through 7 (with no diminishing or negative returns to labor).
O B. Retums to labor are increasing for workers 1,2, and 3, diminishing for workers 4, 5, and 6, and negative for worker 7.
OC. Retums to labor are increasing for workers 1,2, 3, and 4, while diminishing for workers 5 through 7 (with no negative retums to labor).
O D. Returns to labor are increasing for workers 1,2, and 3, while diminishing for workers 4 through 7 (with no negative retums to labor).
O E. Returns to labor are increasing for workers 1 and 2, while diminishing for workers 3 through 7 (with no negative retums
labor).
Over what range of labor Input is marginal product greater than average product? What is happening to average product as employment Increases over this range?
Marginal product is greater than average product from worker to worker , which causes the average product of labor to
V. (Enter your responses as whole numbers.)
Over what range of labor input is marginal product smaller than average producl? What is happening to average product as employment increases over this range?
Marginal product is less than average product from worker to worker. which causes the average product to
V. (Enter your responses as whole numbers.)
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