Question

2.2 Each extra worker produces an additional unit of out- put up to six workers. As more workers are added, no additional outputis produced. Draw the total product 0of labor, average product of labor, and marginal prod- uct of labor curves in a graph similar to Fioun

Answer 1

For every additional unit of output produced by an additional unit of the worker, total output increases at an increasing rate till law of diminishing marginal productivity sets in which implies that with every additional unit of worker added the marginal contribution of each added worker goes on diminishing hence total output increases at a diminishing rate. At a stage when marginal product of added worker becomes zero implies output does not increase along with additional worker means total output has reached its maximum after which marginal product of worker becomes negative and total output declines.