Problem
A shoe factory has 500 employees and produces a thousand pairs of shoes per hour.
a. What is the shoe factory's productivity per worker per hour?
b. The factory hires one new worker. Now, the factory produces 1,002 shoes per hour. Then the factory hires one more worker. Production rises to 1,004 per hour. Does the factory have diminishing, constant, or increasing marginal returns at this level of production?
c. Graph the production function (total product curve) of the shoe factory at these levels of production, carefully labeling all lines and points.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.