Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 12

The following table shows total output (in tax returns completed per day)of the accounting firm of Hoodwink and Finagle:
Assuming the quantity of capital (computers,adding machines,desks,etc.)remains constant at all output levels:
a. Calculate the marginal product of each accountant.
b. Over what range of employment do you see increasing returns to labor? Diminishing returns?
c. Explain why MPL might behave this way in the context of an accounting firm.