Explain intuitively what might cause the marginal product of labor to become negative. The marginal product of labor might become negative due to O A. constant returns to scale. B. fixed quantities of other inputs. O C. workers getting in each other's way within the factory. D. decreasing returns to scale. E. specialization among the workers.
Explain intuitively what might cause the marginal product of labor to become negative. The marginal product of labor might become negative due to O A. constant returns to scale. B. fixed quantities of other inputs. O C. workers getting in each other's way within the factory. D. decreasing returns to scale. E. specialization among the workers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Next, calculate the average product of labor. (Enter your responses rounded to two decimal places.)
Number of Workers
Number of Chairs
Marginal Product
Average Product
1
12
12.00
12
2
20
8.00
10
24
4.00
8.
4
26
2.00
6.5
27
1.00
5.4
6.
26
- 1.00
4.33
7
24
- 2.00
3.42
Does this production function exhibit diminishing returns to labor? Explain.
This production function exhibits
A. constant returns to labor because all other inputs are fixed.
B. increasing returns to labor because output increases with each additional worker.
C. increasing returns to labor because the marginal product of labor is positive.
D. diminishing returns to labor because the additional output produced by each additional worker decreases.
E. diminishing returns to labor because the average product of labor is decreasing.
Explain intuitively what might cause the marginal product of labor to become negative.
The marginal product of labor might become negative due to
A. constant returns to scale.
B. fixed quantities of other inputs.
C. workers getting in each other's way within the factory.
D. decreasing returns to scale.
O E. specialization among the workers.
Expert Solution
Step 1
The correct answer is C. If workers get in each others way there would be a time where the production area would be so congested that by hiring one additional worker the firm will reduce its production.
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