Question

Able 13-6 Wooden Chair Factory Number of Workers Number of Machines Output (chairs produced per hour) Marginal Product of Labor Cost of Workers Cost of Machines Total Cost 1 2 5 2 2 10 3 2 20 4 2 35 5 2 55 6 2 70 7 2 80

Refer to Table 13-6. The Wooden Chair Factory experiences diminishing marginal product of labor with the addition of which worker?
A. the sixth worker
B. the fifth worker
C. the fourth worker
D. the third worker

Answer 1

The Wooden Chair Factory experiences diminishing marginal product of labor with the addition of the fourth worker.

Step-by-step explanation:

In Table 13-6, the Wooden Chair Factory experiences diminishing marginal product of labor as the number of workers increases. The marginal product of labor is the additional output produced by one additional worker. As we can see from the table, the marginal product of labor starts to decline after the fourth worker is added. Therefore, the answer is C. the fourth worker.

Answer 2

The Wooden Chair Factory begins to experience diminishing marginal product of labor with the addition of the sixth worker, as seen by a decrease from 20 to 15 extra chairs produced when comparing the output of the fifth and sixth workers.

Step-by-step explanation:

Refer to Table 13-6, the Wooden Chair Factory experiences diminishing marginal product of labor with the addition of the sixth worker. We can determine this by looking at the output (chairs produced per hour) and comparing it to the number of workers. The marginal product of labor is the change in output obtained by adding one more worker.

Looking at the table:

• 
  
• 1 worker produces 5 chairs, so the marginal product cannot be calculated for the first worker as there's no previous data point.
• 
  
• 2 workers produce 10 chairs, so the marginal product for the second worker is 5 (10-5 chairs).
• 
  
• 3 workers produce 20 chairs, so the marginal product for the third worker is 10 (20-10 chairs).
• 
  
• 4 workers produce 35 chairs, so the marginal product for the fourth worker is 15 (35-20 chairs).
• 
  
• 5 workers produce 55 chairs, so the marginal product for the fifth worker is 20 (55-35 chairs).
• 
  
• 6 workers produce 70 chairs, so the marginal product for the sixth worker is 15 (70-55 chairs).
• 
  
• 7 workers produce 80 chairs, so the marginal product for the seventh worker is 10 (80-70 chairs).

As you can see, the marginal product increases up to the fifth worker but starts to decrease when the sixth worker is added, from 20 to 15 chairs, indicating diminishing marginal product. This trend continues as the seventh worker adds even less to the total output, with a marginal product of 10 chairs. Therefore, the correct answer is A- the sixth worker.