Consider the information in the production schedule that follows.
(a) At what output level do diminishing returns set in?
(b) Assume that each worker receives $8. Fill in the marginal product column, and develop a marginal cost schedule and a marginal cost curve for the production process.
|
Number
of Workers
|
Total Product of All Workers
|
Marginal Product of Each Worker
|
|
1
|
0.10
|
|
|
2
|
0.30
|
|
|
3
|
0.60
|
|
|
4
|
1.00
|
|
|
5
|
1.45
|
|
|
6
|
2.00
|
|
|
7
|
2.50
|
|
|
8
|
2.80
|
|
|
9
|
3.00
|
|
|
10
|
3.19
|
|
|
11
|
3.37
|
|
|
12
|
3.54
|
|
|
13
|
3.70
|
|
|
14
|
3.85
|
|
|
15
|
4.00
|
|
|
16
|
3.90
|
|
|
17
|
3.70
|
|