Digging calms by hand in Sunset Bay requires only labor input. The total number of calms obtained per hour (q) is given by : Q = 100√L Where L is labor input per hour. A. Graph the relationship between q an L B. What the average productivity of labor in Sunset Bay? Graph this relationship and show that output per unit of labor input diminishes for increase in labor input. C. It can be shown that the marginal productivity of labor in Sunset By is given by: MPL = 50 √L Graph this relationship and show that labor’s marginal productivity is less than average productivity for all values of L . Explain why this is do.
Digging calms by hand in Sunset Bay requires only labor input. The total number of calms
obtained per hour (q) is given by :
Q = 100√L
Where L is labor input per hour.
A. Graph the relationship between q an L
B. What the average productivity of labor in Sunset Bay? Graph this relationship and show
that output per unit of labor input diminishes for increase in labor input.
C. It can be shown that the marginal productivity of labor in Sunset By is given by:
MPL =
50
√L
Graph this relationship and show that labor’s marginal productivity is less than average
productivity for all values of L . Explain why this is do.
D. Explain the concept of diminishing returns to labor and how this concept related to
increasing marginal costs.
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