Explain how it is possible for a firm to experience simultaneously an increasing average product but a diminishing marginal product.
The table sets out Sue’s Surfboards’ total product schedule.
Labor Output
(workers (surfboards
per week) per week)
1 …………………….. 30
2 …………………….. 70
3 …………………….. 120
4 …………………….. 160
5 …………………….. 190
6 …………………….. 210
7 …………………….. 220