The table below describes the total product of a firm. Fill in the missing values, a) - u), by calculating marginal product and average product.
1
2
3
4
Units of the variable resource (Capital)
Total Product (TP)
Marginal Product (MP)
Average Product (AP)
0
0
a
-
1
1
b
l
2
3
c
m
3
6
d
n
4
10
e
o
5
15
f
p
6
18
g
q
7
20
h
r
8
19
i
s
9
17
j
t
10
13
k
u
Refer to the table from above.
a. List the units of capital exhibit increasing marginal returns?
b. List the units of capital exhibit decreasing marginal returns?
c. List the units of capital exhibit negative marginal returns?
8. Describe how the total product and average product curves change as a firm moves from increasing to diminishing to negative marginal returns.
9. Does the law of diminishing returns mean that, as a firm hires additional workers, each of those workers is successively worse at doing their job? Why or why not?
The table below describes the total product of a firm. Fill in the missing values, a) - u), by calculating marginal product and average product.
| 1 | 2 | 3 | 4 |
| Units of the variable resource (Capital) | Total Product (TP) | Marginal Product (MP) | Average Product (AP) |
| 0 | 0 | a | - |
| 1 | 1 | b | l |
| 2 | 3 | c | m |
| 3 | 6 | d | n |
| 4 | 10 | e | o |
| 5 | 15 | f | p |
| 6 | 18 | g | q |
| 7 | 20 | h | r |
| 8 | 19 | i | s |
| 9 | 17 | j | t |
| 10 | 13 | k |
u |
Refer to the table from above.
a. List the units of capital exhibit increasing marginal returns?
b. List the units of capital exhibit decreasing marginal returns?
c. List the units of capital exhibit negative marginal returns?
8. Describe how the total product and average product curves change as a firm moves from increasing to diminishing to negative marginal returns.
9. Does the law of diminishing returns mean that, as a firm hires additional workers, each of those workers is successively worse at doing their job? Why or why not?
Related textbook solutions
Related questions
. The following table summarizes the short-run relationship between a firm's total labor input and its total output. (9 points)
| Labor Input | Total Product | Marginal Product | Average Product |
| 0 | 0 | ||
| 1 | 20 | ||
| 2 | 46 | ||
| 3 | 75 | ||
| 4 | 102 | ||
| 5 | 125 | ||
| 6 | 138 | ||
| 7 | 140 | ||
| 8 | 136 |
a. Fill in the columns labeled "Marginal Product" and "Average Product."
b. Over what range of labor input does the firm experience increasing marginal returns? Diminishing marginal returns? Negative marginal returns?
c. Comparing marginal product to average product, under what circumstances will average product rise? Under what circumstances will average product fall?
Can anyone help me solve this question? I am stump and need some help.
A. Fill in the formula for MP and AP at the top of the column in the gray section within the table.
B. Fill in the missing values for MP and AP in the blue sections of the table.
|
Winsome Widget Factory |
|||
|
Quantity of Labor |
Total Output |
Marginal Product of Labor |
Average Product of Labor |
|
0 |
0 |
0 |
2 |
|
1 |
600 |
|
|
|
2 |
1,100 |
|
|
|
3 |
1,500 |
|
|
|
4 |
1,950 |
|
|
|
5 |
2,250 |
|
|
|
6 |
2,300 |
|
|
|
7 |
2,275 |
|
|
C. Identify the point of diminishing returns. Why do diminishing returns occur?
D. Identify the production levels where increasing and negative returns occur if any.
