QUESTION IMAGE
Question
talias board wax co. is a small, surf - focused operation near east los angeles selling eco - friendly surfboard wax to local surfers and surf shops. talias compact workspace has just enough room to house the five wax - melting stations required for daily production. talia signed a lease that includes both the five stations and the use of the equipment. due to the terms of the lease and the buildings size constraint, talia is unable to change the stores number of wax - melting stations in the short run.
however, talia adjusts the number of workers mixing and packaging the wax each week based upon projected sales. each sunday, talia sets the weekly schedule accordingly. in the short run, labor is a input, while the melting stations are inputs.
the following table presents talias daily production schedule.
fill in the blanks to complete the marginal product of labor column for each worker.
| labor (number of workers) | output (units of wax) | marginal product of labor (units of wax) |
|---|---|---|
| 1 | 60 | |
| 2 | 100 | |
| 3 | 130 | |
| 4 | 150 | |
| 5 | 160 |
on the following graph, plot talias production function using the green points (triangle symbol).
note: plot your points in the order in which you would like them connected. line segments will connect the points automatically.
hint: be sure to plot the first point at (0, 0).
Step1: Recall marginal product formula
Marginal Product of Labor (MPL) = $\Delta$Output / $\Delta$Labor
Step2: Calculate MPL for 1 worker
When going from 0 to 1 worker, Output changes from 0 to 60. $\Delta$Output = 60 - 0 = 60, $\Delta$Labor=1 - 0 = 1. MPL = $\frac{60 - 0}{1 - 0}=60$
Step3: Calculate MPL for 2 workers
When going from 1 to 2 workers, Output changes from 60 to 100. $\Delta$Output = 100 - 60 = 40, $\Delta$Labor = 2 - 1 = 1. MPL = $\frac{100 - 60}{2 - 1}=40$
Step4: Calculate MPL for 3 workers
When going from 2 to 3 workers, Output changes from 100 to 130. $\Delta$Output = 130 - 100 = 30, $\Delta$Labor = 3 - 2 = 1. MPL = $\frac{130 - 100}{3 - 2}=30$
Step5: Calculate MPL for 4 workers
When going from 3 to 4 workers, Output changes from 130 to 150. $\Delta$Output = 150 - 130 = 20, $\Delta$Labor = 4 - 3 = 1. MPL = $\frac{150 - 130}{4 - 3}=20$
Step6: Calculate MPL for 5 workers
When going from 4 to 5 workers, Output changes from 150 to 160. $\Delta$Output = 160 - 150 = 10, $\Delta$Labor = 5 - 4 = 1. MPL = $\frac{160 - 150}{5 - 4}=10$
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| Labor (Number of workers) | Output (Units of Wax) | Marginal Product of Labor (Units of Wax) |
|---|---|---|
| 1 | 60 | 60 |
| 2 | 100 | 40 |
| 3 | 130 | 30 |
| 4 | 150 | 20 |
| 5 | 160 | 10 |