Question

Janitors per evening	0	1	2	3	4	5	6	7
Classrooms cleaned per evening	0	3	7	12	16	17	17	16

1. What is the marginal product of the second janitor?

2. What is the average product of four janitors?

3. Is the addition of the 3rd, 4th and 7th janitor associated with increasing, diminishing, or negative marginal returns? Explain.

4. Draw the total product, average product, and marginal product curves and shade the regions corresponding to increasing marginal returns, decreasing marginal returns, and negative marginal returns.

5. Characterize the nature of marginal returns in the region where: (a) the slope of the total product curve is positive and increasing; (b) the slope of the total product curve is positive and decreasing; and (c) the slope of the total product curve is negative.

Answer 1

here, MP = Change in TP / Change in Janitors AP = TP / janitors

1. The marginal Product of the second janitor is 4

2. Average product of 4 janitors is 4

3. The addition of 3^rd janitor is associated with increasing marginal returns, 4^th with decreasing Marginal returns and 7^th with negative Marginal Returns

4.

5.

The nature of Marginal returns.

a. With slope of TP positive and at increasing rate, the MP also rises at increasing rate

b. With slope of TP rising at decreasing rate, the MP hits its maximum and starts to fall.

c. With slope of TP is negative, MP falls below zero and is negative.