Table 1 shows the daily output of roasted coffee (in kg) at an artisanal roastery as the number of workers varies, while the size of the premises and the number of roasting machines remain constant.
Table 1
| Number of workers | Total daily output (kg) |
|---|---|
| 1 | 12 |
| 2 | 28 |
| 3 | 48 |
| 4 | 72 |
| 5 | 92 |
| 6 | 108 |
| 7 | 120 |
For this roastery, diminishing marginal returns to labour set in when the
3rd worker is employed.
4th worker is employed.
5th worker is employed.
6th worker is employed.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.