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The time has come for you to go to college and move from your parent's home. You are moving approximately 300 boxes from your parent's house to the school dorm and need to hire some help. The moving company has given you the following production table.
Number of Workers (per hour)
Total Product of Labor (boxes per hour)
Average Production Level
Marginal Production Level
0
1
20
2
46
3
66
4
80
5
85
Complete the table and determine the most efficient number of movers to hire. Explain. Does the production function in the table exhibit diminishing marginal returns? Explain what you think is happening.
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