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Question
Tad's Baitshop currently uses no computers in determining inventory. The number of items that can be inventoried in a day is given by y(L) =
, where L is the number of labor hours used. If Tad purchases a computer to be used for inventory purposes, the number of items that can be inventoried in a day becomes y(L) = 2. Use the information in the table below to sketch Tad's marginal product of labor curves before and after the use of the computer for inventory purposes.| Old Quantity Inventoried | New Quantity Inventoried | L | Old MP of labor | New MP of labor |
| 2 | 4 | 4 | 0.25 | 0.5 |
| 4 | 8 | 16 | 0.125 | 0.25 |
| 5 | 10 | 25 | 0.10 | 0.20 |
Answer
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