Question: We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production

We R' Write is really worried about their production line for pens. The company is concerned that they are employing more workers on the production line than necessary. We R' Write has provided you with the production information for pens in the table below that corresponds to different numbers of workers on the production line.

  • Describe where the law of diminishing marginal productivity begins for We R' Write.
  • We R' Write currently uses 75 workers on the production line per day. Given the calculations in the table, is this number optimal? Why, or why not?
  • If you could make a suggestion regarding the optimal number of workers We R' Write should use on the production line, what would it be? Why?

Number of

Workers per

Day

Pens

Produced per

Day

Average

Product

Marginal

Product

Price per Pen

Total

Value

Product

Average

Value

Product

Marginal

Value

Product

Price of

Worker per

Day

0

0

---

---

$3.50

$0.00

---

---

$560

15

1,000

66.67

67

$3.50

$52.50

$233.33

$233.33

$560

30

2,700

90.00

113

$3.50

$105.00

$315.00

$396.67

$560

45

5,100

113.33

160

$3.50

$157.50

$396.67

$560.00

$560

60

7,900

131.67

187

$3.50

$210.00

$460.83

$653.33

$560

75

12,000

160.00

273

$3.50

$262.50

$560.00

$956.67

$560

90

15,700

174.44

247

$3.50

$315.00

$610.56

$863.33

$560

105

18,100

172.38

160

$3.50

$367.50

$603.33

$560.00

$560

120

20,300

167.17

147

$3.50

$420.00

$592.08

$513.33

$560

135

21,900

162.22

107

$3.50

$472.50

$567.78

$373.33

$560

150

22,300

148.67

27

$3.50

$525.00

$520.33

$93.33

$560

165

22,300

135.15

0

$3.50

$577.50

$473.03

$0.00

$560

180

21,500

119.44

-53

$3.50

$630.00

$418.06

-$186.67

$560

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