Question

1. inputs and outputs

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)
0 0
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).

Explanation:

Step1: Recall marginal product of labor formula

The marginal product of labor (MPL) is calculated as $\text{MPL}=\frac{\Delta\text{Output}}{\Delta\text{Labor}}$. When labor changes from 0 to 1 worker, $\Delta\text{Labor}=1 - 0=1$ and $\Delta\text{Output}=60 - 0 = 60$. So the MPL for the first worker is $\frac{60 - 0}{1-0}=60$.

Step2: Calculate MPL for second worker

When labor changes from 1 to 2 workers, $\Delta\text{Labor}=2 - 1 = 1$ and $\Delta\text{Output}=100 - 60=40$. So the MPL for the second worker is $\frac{100 - 60}{2 - 1}=40$.

Step3: Calculate MPL for third worker

When labor changes from 2 to 3 workers, $\Delta\text{Labor}=3 - 2=1$ and $\Delta\text{Output}=130 - 100 = 30$. So the MPL for the third worker is $\frac{130 - 100}{3 - 2}=30$.

Step4: Calculate MPL for fourth worker

When labor changes from 3 to 4 workers, $\Delta\text{Labor}=4 - 3 = 1$ and $\Delta\text{Output}=150 - 130=20$. So the MPL for the fourth worker is $\frac{150 - 130}{4 - 3}=20$.

Step5: Calculate MPL for fifth worker

When labor changes from 4 to 5 workers, $\Delta\text{Labor}=5 - 4=1$ and $\Delta\text{Output}=160 - 150 = 10$. So the MPL for the fifth worker is $\frac{160 - 150}{5 - 4}=10$.

Answer:

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

In the short - run, labor is a variable input, while the melting stations are fixed inputs.