To help Emma calculate the optimal number of employees to hire for her sandwich
ID: 1181568 • Letter: T
Question
To help Emma calculate the optimal number of employees to hire for her sandwich shop, the first
step is to complete the table by calculating Average Product and Marginal Product.
Average Product = Output/Labor and Marginal Product = the change in Output divided by the
change in Labor (note that the change in Labor is equal to 1 for each calculation).
completed table:
Is this production function consistent with the law of diminishing marginal returns? Explain.
Answer: Yes. Although Marginal Product initially increases as additional workers are added, it
does eventually start to diminish. This production function shows that diminishing marginal
product (or diminishing returns) sets in when the fourth worker is added.
Explanation / Answer
The optimal number of employees to hire for her sandwich shop is 3 workers because after 3 workers, marginal product decreases.
Yes, this production function is consistent with the law of diminishing marginal returns. adding more workers causes problems such as workers getting in each other's way or frequently finding themselves waiting for access to a part. In all of these processes, producing one more unit of output per unit of time will eventually cost increasingly more, due to inputs being used less and less effectively.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.