Mr Naidoo owns a farm where he specialises in the production of vegetables. There has been increases in demand for vegetable as people are being health conscious. Mr Naidoo decides to hire more workers. The figure below shows variable inputs of labour being added to a constant amount of resources. Marginal cost will be at a minimum for Mr Naidoo when he is hiring

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Mr Naidoo owns a farm where he specialises in the production of vegetables. There has been increases in demand for vegetable as people are being health conscious. Mr Naidoo decides to hire more workers. The figure below shows variable inputs of labour being added to a constant amount of resources. Marginal cost will be at a minimum for Mr Naidoo when he is hiring

Marginal and average product
A.Q3 workers
B.Q2 workers
Marginal Product
C. More than Q3 workers
D.Q1 workers
a
Average product
Inputs of labour
doo whe
Transcribed Image Text:Marginal and average product A.Q3 workers B.Q2 workers Marginal Product C. More than Q3 workers D.Q1 workers a Average product Inputs of labour doo whe
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