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# Marginal Physical Product of Labor

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Various levels of output for employment:

a. Calculate the MPPL schedule
b. Calculate the marginal physical product of labor (MPPL) and marginal cost of labor (MRCL) with a fixed wage of \$5 per hour.
c. Assuming capital is constant, with 3 machines and MPPK/MRCK = 30, what is the least cost input combo of labor and capital? How much output is produced?

Workers Output
1 500
2 800
3 2000
4 2600
5 2900
6 3100

I have calculated MP:

Workers MP
1 500
2 400
3 666.67
4 650
5 580
6 516.67

I am not sure how to determine MRCL with only this information. I am also having a hard time coming up with a solution on part C.

https://brainmass.com/economics/employment/marginal-physical-product-of-labor-107508

#### Solution Preview

a. Calculate the MPPL schedule
refer to the EXCEL.
Note: your calculation is the average product. The correct way to compute marginal product is:
MPPL = Output2 - Output1
e.g. MPPL(from 1 to 2) = 800 - 500 = 300
b. Calculate the marginal physical product of labor (MPPL) and ...

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## Production Function - Average and Marginal Product

Problem:

The short run production function for a manufacturer of DVD drivers is as follows:
Input of Labor (workers per week) Total output of DVD drivers
0 0
1 25
2 60
3 85
4 105
5 115
6 120

Based on the information, calculate the averae physical product at each quantity of labor.

Part 2.
Using the information provided in the attachment calculate the marginal physical product of labor at each quantity of labor.

Part 3.
From the manufacturer of DVD drivers from part 1 and 2, at what point do diminshing marginal returns set in?

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