Labour 0 1 2 3 4 5 6 7 Total Product 0 10 25 37 42 45 45 42 Marginal Product (pots per day) 0 10 15 12 5 3 0 -3 Average Product (pots per day) 0 10/1 = 10 25/2 = 12.5 37/3 =12.33 42/4 = 10.5 45/5 = 9 45/6 = 7.5 42/7 = 6 Using the values of AP and MP obtained from the table above, on one graph, draw the total product curve, on another graph, and draw the marginal product and average product curves respectively, being careful to fully label the graph and explain briefly the law of diminishing marginal returns from your computation. Also how does the hypothesis of diminishing returns (MP& AP) influence the behaviour of costs (MC& AC)?
Hello, can I get some help please?
1. Total Product (TP): Total Product refers to the overall output or production of goods or services resulting from a specific quantity of input resources (such as labor, capital, or raw materials) utilized in the production process. In the context of your provided data, total product represents the total number of pots produced by a certain number of workers (labor) in a given period of time.
2. Marginal Product (MP): Marginal Product is the additional output or increase in total product that results from employing one more unit of input while keeping other inputs constant. In the context of your data, marginal product represents the additional pots produced when one more worker is added to the production process.
3. Average Product (AP): Average Product is the output per unit of input, calculated by dividing the total product by the quantity of input used. In the context of your data, average product represents the average number of pots produced by each worker in the production process.
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