The number of repairs produced by a computer repair shop depends on the number of workers as
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Question:
The number of repairs produced by a computer repair shop depends on the number of workers as follows:
Number of workers | Number of repairs |
0 | 0 |
1 | 10 |
2 | 22 |
3 | 36 |
4 | 54 |
5 | 58 |
6 | 66 |
7 | 70 |
8 | 69 |
Assume inputs other than labor are fixed in the short run.
1. Add two additional columns to the table and enter the marginal product and average product for each number of workers.
2. Over what range of labor output are there increasing returns to labor? Diminishing returns to labor? Negative returns?
3. What quantity of labor will maximize efficiency? Explain your answer.
4. 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?
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