Find the marginal product where diminishing returns sets in
Econometrics
A firm has the following Total Product function
Labor Output Labor Output Labor Output
0 0 4 69 8 115
1 12 5 86 9 116
2 30 6 100 10 116
3 50 7 110
a) Find the Marginal Product and use this information to determine where diminishing returns sets in.
b) If labor costs $684 per unit, find the Marginal cost at Q = 30, Q= 50 and Q = 69. Round any decimal answers to 1 place. Explain how these answers are consistent with the MP you found in (a)
