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Given the following production function for Tight Jeans Corporation, calculate the marginal physical product, graph the...

Given the following production function for Tight Jeans Corporation, calculate the marginal physical product, graph the production function and the marginal physical product on two separate graphs, then answer three questions about marginal productivity.

a. Calculate the marginal physical product.
Short-Run Production Function
Labor input (workers per day) 0 1 2 3 4 5 6 7 8
Output (pairs of jeans per day) 0 10 36 56 68 74 76 76 74
Marginal physical product -- 10 26 20 12 6 2 0 -2
At what level of employment does:
d. the law of diminishing returns become apparent? Worker number
e. MPP hit zero? Worker number 7
f. MPP become negative? Worker number 8
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Answer #1

D) Law of diminishing returns starts when MPP decreases. Thus worker=3 starts diminishing MPP.

e)MPP=0 when labor input=7

f)MPP=-be when labor input=8

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