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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:3. Total and marginal product
Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for its hourly production.
MARGINAL PRODUCT (Sandwiches per worker)
20
18
16
14
0
2
LABOR (Workers)
MP
When labor increases from three to four workers, total product increases by
(?.
per hour.

Transcribed Image Text:Use the orange points (square symbol) to plot the production function on the following graph. Assume that if there are no workers, Underground
Sandwiches does not have any output.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
80
72
64
56
48
40
32
24
16
8
0
0
1
3
2
QUANTITY OF LABOR (Workers)
5
-O
Production Function
(?)
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