How to solve for the table
i) Average product of labour= total output/ Labor
Marginal product of labor = ∆Q/∆L
ii) When Total output= 68 The marginal returns starts to decreases from 26 to 20. 4th labor produce less output than the previous .
iii) At L= 6 we observe negative marginal product = -2. It means when one more labor is added it actually decreases the total output instead of increasing it. When L=6 Total output = 78, it has fallen from 80.
iv) At L=3, TP=Q= 48, MP= 26
At L=4,TP=Q=68, MP= 20
We can see that total output is more when L=4. It is more productive but at L=4 MP starts to decline.
In-class Activity #7 Below table illustrates the production of a furniture manufacturing company ...