[Solution] The diagram below shows the production function for Clean-Like-New car wash business. Number of Washed Cars Compute and insert the total product,


Question: The diagram below shows the production function for Clean-Like-New car wash business.


Number of Washed Cars

  1. Compute and insert the total product, marginal product, and the average product values into the following table: (4 marks)
    Number of Workers Total Product Marginal Product Average Product
    0
    1
    2
    3
    4
    5
    6
    7
  2. At what outputs do increasing marginal productivity occur? (1 mark)
  3. At what output does diminishing marginal productivity begin? (1 mark)

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