By comparing the marginal product diagram with the production function diagram we can see the relationship between marginal product and production function.
Do the following activity to see if you understand the graphical representation of the law of diminishing returns:
The diagram below represents the production function for Best Barber. Study this diagram and answer the question.
a. What is the marginal product of the second barber?
b. What is the marginal product of the fifth barber?
c. What is the maximum number of haircuts that Best Barber can reach?
d. How many barbers should Best Barber employ to reach its maximum output?
e. At what point does the marginal product start to diminish?
f. At what point does total product start to decrease?