Question

Computing the marginal product of labor

im really looking for the first multiple choice question and the last T or F question. the first question is either B or C..i dont know how to figure out how many extra lawns/worker thanks!

Suppose that Simone runs her own lawn care service and that her firm is competitive in the lawn care industry. She has a fixed number of tools that can be used to maintain a yard, but she needs to determine the productivity gained from hiring various numbers of workers per week. Which of the following statements best represents the idea behind the marginal physical product of labor (MPL)? When Simone hires more workers, she can mow more lawns per week, but at a decreasing rate. Ir Simone buys one more lawn mower, she can mow 15 more lawns per week. @ I Simone hires an additional worker per week, she can mow 10 more lawns per week. Ir Simone hires twice as many workers per week, she can mow twice as many lawns per week. The following graph portrays the weekly production function for lawn mowing (f (K L)) given a fixed amount of capital (K) and varying labor inputs (L). (Note: Each black point (plus symbol) represents a point on the production function.) OUTPUT (Lawn mowed per week) LABOR (Workers per week) Complete the following table by computing the MPL for different quantities of workers. For each of the quantities, Simone is determining the MPL between hiring this amount of labor or one unit more. MPL (Lawns mowed per week) Labor (Number of workers per week) From 3 to 4 workers From 5 to 6 workers From 8 to 9 workers True or False: This production function exhibits diminishing marginal physical product of labor. False True

Answer 1

Marginal product of labor represents the change in number of output produced by increasing a labor by an unit, keeping other things constant.

Simon has fixed number of tool, an increase in number of workers will increase of mow lawns but at the decreasing rate.

The number of mow lawns will increase at a decreasing rate because number of tools are fixed.

Answer: Option (A)

MPL = (Change in output / Change in Labor)

True: This production function exhibits diminishing physical marginal product of labor.

Because MPL decrease as the number of labor increases.