3. You are given the following information about the output of good X as successive workers are added to a fixed amount of land and capital equipment. Number of workers 10 11 12 13 14 15 16 Total output (unit of X) 100 121 144 169 189 195 200 At what level of employment does MPP become a maximum? At what level of employment does APP become a maximum? At what level of employment do diminishing returns set in? Can you determine from this information how many workers the firm will employ? Explain your answer. Draw graphs to show all the relationships а) b) c) d) e)

3. You are given the following information about the output of good X as successive workers are added to a fixed amount of land and capital equipment. Number of workers 10 11 12 13 14 15 16 Total output (unit of X) 100 121 144 169 189 195 200 At what level of employment does MPP become a maximum? At what level of employment does APP become a maximum? At what level of employment do diminishing returns set in? Can you determine from this information how many workers the firm will employ? Explain your answer. Draw graphs to show all the relationships а) b) c) d) e)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter30: The Labor Market

Section: Chapter Questions

Problem 14E

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