You have been hired by the Tootsie Roll Company to analyze their production process.Your predecessor in the position left you with the following table: $$\begin{array} { | c | c | l | c | }
\hline \text { Number of Workers } & \begin{array} { c }
\text { Total Output } \
\text { (thousands of bags of } \
\text { Tootsie Rolls) }
\end{array} & \text { Marginal Product } & \begin{array} { c }
\text { Average } \
\text { Product }
\end{array} \
\hline 0 & 0 & & \
\hline 1 & 4 & & \
\hline 2 & 10 & & \
\hline 3 & 17 & & \
\hline 4 & 23 & & \
\hline 5 & 28 & & \
\hline 6 & 31 & & \
\hline 7 & 32 & & \
\hline 8 & 32 & & \
\hline 9 & 30 & & \
\hline 10 & 25 & & \
\hline
\end{array}$$ (NOTE: Marginal product represents changes between numbers of workers.Therefore,leave the first row blank in the "Marginal Product" column and put the marginal product from 0 workers to 1 worker in the second row of that column. )
(a)Fill in the blank values in the table above.
(b)Do the values in the table represent short-run or long-run production relationships? Explain.
(c)Are these production values consistent with the law of diminishing marginal productivity? Explain.
(Extra Credit: Between what levels of output is the firm most likely to operate? Explain your answer. )

Question

You have been hired by the Tootsie Roll Company to analyze their production process.Your predecessor in the position left you with the following table: $$\begin{array} { | c | c | l | c | } 
\hline \text { Number of Workers } & \begin{array} { c } 
\text { Total Output } \
\text { (thousands of bags of } \
\text { Tootsie Rolls) }
\end{array} & \text { Marginal Product } & \begin{array} { c } 
\text { Average } \
\text { Product }
\end{array} \
\hline 0 & 0 & & \
\hline 1 & 4 & & \
\hline 2 & 10 & & \
\hline 3 & 17 & & \
\hline 4 & 23 & & \
\hline 5 & 28 & & \
\hline 6 & 31 & & \
\hline 7 & 32 & & \
\hline 8 & 32 & & \
\hline 9 & 30 & & \
\hline 10 & 25 & & \
\hline
\end{array}$$ (NOTE: Marginal product represents changes between numbers of workers.Therefore,leave the first row blank in the "Marginal Product" column and put the marginal product from 0 workers to 1 worker in the second row of that column. )
(a)Fill in the blank values in the table above.
(b)Do the values in the table represent short-run or long-run production relationships? Explain.
(c)Are these production values consistent with the law of diminishing marginal productivity? Explain.
(Extra Credit: Between what levels of output is the firm most likely to operate? Explain your answer. )

Quizplus · Accepted Answer

The Answer of You have been hired by the Tootsie Roll Company to analyze their production process.Your predecessor in the position left you with the following table: $$\begin{array} { | c | c | l | c | } 
\hline \text { Number of Workers } & \begin{array} { c } 
\text { Total Output } \
\text { (thousands of bags of } \
\text { Tootsie Rolls) }
\end{array} & \text { Marginal Product } & \begin{array} { c } 
\text { Average } \
\text { Product }
\end{array} \
\hline 0 & 0 & & \
\hline 1 & 4 & & \
\hline 2 & 10 & & \
\hline 3 & 17 & & \
\hline 4 & 23 & & \
\hline 5 & 28 & & \
\hline 6 & 31 & & \
\hline 7 & 32 & & \
\hline 8 & 32 & & \
\hline 9 & 30 & & \
\hline 10 & 25 & & \
\hline
\end{array}$$ (NOTE: Marginal product represents changes between numbers of workers.Therefore,leave the first row blank in the "Marginal Product" column and put the marginal product from 0 workers to 1 worker in the second row of that column. )
(a)Fill in the blank values in the table above.
(b)Do the values in the table represent short-run or long-run production relationships? Explain.
(c)Are these production values consistent with the law of diminishing marginal productivity? Explain.
(Extra Credit: Between what levels of output is the firm most likely to operate? Explain your answer. )

You Have Been Hired by the Tootsie Roll Company to Analyze