Math  /  Data & Statistics

QuestionCompleted: 7 of 8 My score: 7.5/87.5 / 8 pts (93.75\%) Part 2 of 2
Suppose a firm produces hardware that plays video games using workers according to the table below. Suppose also that its output sells for $100\$ 100 per unit. \begin{tabular}{cc} \hline Workers & Output \\ \hline 0 & 0 \\ 1 & 24 \\ 2 & 36 \\ 3 & 42 \\ 4 & 45 \\ 5 & 47 \\ \hline \end{tabular}
Is the firm experiencing the effects predicted by the law of diminishing returns? The firm is experiencing diminishing returns. What is the value of the marginal product of the third worker? The third worker's value of the marginal product is $\$ \square. (Enter your response as an integer.)

Studdy Solution
The value of the marginal product of the third worker is $600\$600.
The firm *is* experiencing diminishing returns, as the marginal product of each worker decreases as more workers are hired.

View Full Solution - Free
Was this helpful?

Studdy solves anything!

banner

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

ParentsInfluencer programContactPolicyTerms
TwitterInstagramFacebookTikTokDiscord