Authors libby rittenberg 458

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 third janitor associated with increasing,
diminishing, or negative marginal returns? Explain.
4. Is the addition of the fourth janitor associated with increasing,
diminishing, or negative marginal returns? Explain.
5. Is the addition of the seventh janitor associated with
increasing, diminishing, or negative marginal returns? Explain.
6. 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.
7. Calculate the slope of the total product curve as each janitor
is added.
8. Characterize the nature of marginal returns in the region

where
1. The slope of the total product curve is positive and
increasing.
2. The slope of the total product curve is positive and
decreasing.
3. The slope of the total product curve is negative.
2. Suppose a firm is producing 1,000 units of output. Its average fixed
costs are $100. Its average variable costs are $50. What is the total
cost of producing 1,000 units of output?
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org

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