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Draw a total product curve for Joe's repair shop. 9.17) What is the marginal product for the 5th worker?

9.16) Draw a total product curve for Joe's repair shop.
9.17) What is the marginal product for the 5th worker?
9.18) At what point do the negative marginal returns begin?
9.19) At what point does the hiring of new workers result in a decreasing marginal return?

Answer

9.16) The total product curve can be drawn by plotting the given data points on a graph with 'Quantity of Labor (workers)' on the x-axis and 'Total Product (cars repaired per day)' on the y-axis. Connect the points to form the curve.

9.17) The marginal product for the 5th worker is calculated by the change in total product when the 5th worker is added. It is 14 (total product with 5 workers) - 12 (total product with 4 workers) = 2 cars repaired per day.

9.18) Negative marginal returns begin when adding an additional worker decreases the total product. This occurs when the total product decreases from 15 (with 6 workers) to 15 (with 7 workers) and then to 13 (with 8 workers).

9.19) The hiring of new workers results in a decreasing marginal return starting from the 6th worker, as the marginal product decreases from 3 (4th to 5th worker) to 2 (5th to 6th worker).

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