Question: Digging clams by hand in Sunset Bay requires only labor input. The total number of clams obtained per hour (q) is given by q =

Digging clams by hand in Sunset Bay requires only labor input. The total number of clams obtained per hour (q) is given by

q = 100 √L

Where L is labor input per hour.

a. Graph the relationship between q and L.

b. What is the average productivity of labor (output per unit of labor input) in Sunset Bay? Graph this relationship and show that output per unit of labor input diminishes for increases in labor input.

c. The marginal productivity of labor in Sunset Bay is given by

MPL = 50. /√L

Graph this relationship and show that labor’s marginal productivity is less than average productivity for all values of L. Explain why this is so.


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