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.
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.
Related textbook solutions
Related questions
A. Fill in the formula for AFC, AVC, ATC, and MC at the top of the column in the gray section within the table. B. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, and MC in the blue sections of the table.
|
Output |
Total Fixed Cost |
Total Variable Cost |
Total Cost |
Average Fixed Cost |
Average Variable Cost |
Average Total Cost |
Marginal Cost |
|
0 |
|
|
$600 |
|
|
|
|
|
5 |
|
|
900 |
|
|
|
|
|
10 |
|
|
1,150 |
|
|
|
|
|
15 |
|
|
1,350 |
|
|
|
|
|
20 |
|
|
1,600 |
|
|
|
|
|
25 |
|
|
1,900 |
|
|
|
|
|
30 |
|
|
2,275 |
|
|
|
|
|
35 |
|
|
2,725 |
|
|
|
|
|
40 |
|
|
3,375 |
|
|
|
|
|
45 |
|
|
4,225 |
|
|
|
|
|
50 |
|
|
5,325 |
|
|
|
|
C. Identify the efficient scale of the firm. Explain your reasoning.
Part II. Consider the values in the following table for the Winsome Widget Factory
|
Winsome Widget Factory |
|
|
Output |
Long-Run Average Total Cost |
|
0 |
------------------ |
|
5 |
170 |
|
10 |
110 |
|
15 |
85 |
|
20 |
83 |
|
25 |
78 |
|
30 |
75 |
|
35 |
75 |
|
40 |
80 |
|
45 |
82 |
|
50 |
97 |
a. Over what output levels do the economics of scale occur? Explain.
b. Over what output levels do constant returns to scale occur? Explain.
c. Over what output levels do diseconomies of scale occur? Explain.
