You have employed five workers of varying physical strength to dig a ditch. Workers without shovels have zero productivity in ditchdigging. How should you assign shovels to workers if you don t have enough shovels to go around? How should you assign any additional shovels that you obtain? Using this example, discuss (a) the relationship between the availability of physical capital and average labor productivity and (b) the concept of diminishing returns to capital.
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