Question: Consider the table below. It shows the production (output) obtained as the # of workers rises. For example, when 1 worker is employed, output is

Consider the table below. It shows the production (output) obtained as the # of workers rises. For example, when 1 worker is employed, output is 18. With 5 workers production rises to 55

labor	output	MPN
0	0
1	18
2	32
3	42
4	49
5	55

a. Define the Marginal Product of Labor (i.e. MPN). In other words, you want to explain what MPN captures/measures. Then calculate MPN by filling in the last column of the table above.

b. Now that you have obtained the MPN (last column in the table), you can observe that MPN falls as N rises. This means that we have diminishing marginal productivity of labor. Why is there diminishing MPN? Explain.

c. Suppose that the nominal Price in the economy of each unit of output is $10. If the firm hires 4 workers using the profit maximizing condition, what is the real wage equal? What is the nominal wage equal to? Provide a discussion/explanation for your results along with any calculations.

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