Question

c. What is the marginal product of the first worker? The second worker? The third worker? Marginal product of the first worker: Marginal product of the second worker: Marginal product of the third worker: cups of frozen yogurt cups of frozen yogurt cups of frozen yogurt Why does marginal product decline as the number of workers increases? The number of workers increases, but the number of yogurt cups does not. Assigning multiple workers to produce one cup of yogurt reduces marginal worker productivity. The number of workers increases, but the number of yogurt machines does not. Since additional workers reduce each worker's access to capital, each additional worker contributes less to total output. The Law of Diminishing Marginal Returns to Labor states that marginal worker productivity is always decreasing in the number of workers hired.

          c. What is the marginal product of the first worker? The second worker? The third worker?
Marginal product of the first worker:
Marginal product of the second worker:
Marginal product of the third worker:
cups of frozen yogurt
cups of frozen yogurt
cups of frozen yogurt
Why does marginal product decline as the number of workers increases?
The number of workers increases, but the number of yogurt cups does not. Assigning multiple workers to produce one
cup of yogurt reduces marginal worker productivity.
The number of workers increases, but the number of yogurt machines does not. Since additional workers reduce each
worker's access to capital, each additional worker contributes less to total output.
The Law of Diminishing Marginal Returns to Labor states that marginal worker productivity is always decreasing in
the number of workers hired.

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c. What is the marginal product of the first worker? The second worker? The third worker?
Marginal product of the first worker:
Marginal product of the second worker:
Marginal product of the third worker:
cups of frozen yogurt
cups of frozen yogurt
cups of frozen yogurt
Why does marginal product decline as the number of workers increases?
The number of workers increases, but the number of yogurt cups does not. Assigning multiple workers to produce one
cup of yogurt reduces marginal worker productivity.
The number of workers increases, but the number of yogurt machines does not. Since additional workers reduce each
worker's access to capital, each additional worker contributes less to total output.
The Law of Diminishing Marginal Returns to Labor states that marginal worker productivity is always decreasing in
the number of workers hired.

Added by Julian S.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Doris Bennett

01/05/2022

Step 1

This can be calculated by subtracting the total output with no workers from the total output with one worker. Show more…

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c. What is the marginal product of the first worker? The second worker? The third worker? Marginal product of the first worker: cups of frozen yogurt Marginal product of the second worker: cups of frozen yogurt Marginal product of the third worker: cups of frozen yogurt Why does marginal product decline as the number of workers increases? The number of workers increases, but the number of yogurt cups does not. Assigning multiple workers to produce one cup of yogurt reduces marginal worker productivity. The number of workers increases, but the number of yogurt machines does not. Since additional workers reduce each worker's access to capital, each additional worker contributes less to total output. The Law of Diminishing Marginal Returns to Labor states that marginal worker productivity is always decreasing in the number of workers hired. 120111 c. What is the marginal product of the first worker? The second worker? The third worker? cups of frozen yogurt Marginal product of the first worker: cups of frozen yogurt Marginal product of the second worker: cups of frozen yogurt Marginal product of the third worker: Why does marginal product decline as the number of workers increases? The number of workers increases, but the number of yogurt cups does not. Assigning multiple workers to produce one cup of yogurt reduces marginal worker productivity. The number of workers increases, but the number of yogurt machines does not. Since additional workers reduce each worker's access to capital, each additional worker contributes less to total output. O The Law of Diminishing Marginal Returns to Labor states that marginal worker productivity is always decreasing in the number of workers hired

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Transcript

00:02 Marty has a frozen yogurt shop, and he's got three yogurt machines and refrigerators to keep the yogurt.

00:10 He's got mix and cups and toppings and workers.

00:14 We want to know first, what are the fixed resources and what are the variable? the fixed would be the shop itself, the three yogurt machines and the refrigerators.

00:26 The variable would be the number of workers, the amount of yogurt.

00:31 Mix the cups and the topics.

00:35 On the left -hand side, we've got his production function where marty's estimated how many cups of yogurt he can produce per day with different numbers of workers employed.

00:47 And we want to draw our total product curve, which shows the amount of output that can be produced by different amounts of labor.

00:56 So on the graph on the right, it's all set up with labor on the horizontal quantity on the vertical and we plot our points on the on the the the production function if nobody works output zero if one person works that one person by themselves could do 110 cups per day two people though would increase output up to 200 three people up to 270 four people our output would be 300, five people it would be 320, and six people it would be 330.

01:53 So if we connect our points, we have our production possibilities curve.

02:01 Now, we want to know what's the marginal product for each worker.

02:05 The marginal product is the change in output that we get when we hire one more person...

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