Suppose that a tailor working alone can make 2 suits per month; assuming that the business continues to hire tailors to work in the same shop, 2 tailors can produce 5 suits, 3 tailors can produce 10 suits, 4 tailors can produce 14 suits, 5 tailors can produce 17 suits, and 6 tailors can produce 19 suits.

a.   Organize this information in a table and find the marginal product of labour (MPL).
b.   When does the law of diminishing returns begin to operate? Why do you have increasing returns up to that point?
c.   Why do diminishing returns eventually set in?

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a To organize the information in a table and find the marginal product of labor MPL we can use the g... View the full answer