Labour (Units) Total Product (TPP) Average Product (APP) Marginal Product (MPP) 0 0 1 100 2 250 3 350 4 400 5 420 6 420 Answer the following questions based on the table above: A. Calculate the Marginal Product and the average product.  B. Explain the law of diminishing returns.  C. Plot the marginal product and average product curves and explain the relationship between the two.  D. What is the optimal number of workers for this business to hire? Label it on your graph in (C

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Chapter11: The Firm: Production And Costs
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Labour (Units) Total Product (TPP) Average Product (APP) Marginal Product (MPP)
0 0
1 100
2 250
3 350
4 400
5 420
6 420
Answer the following questions based on the table above:
A. Calculate the Marginal Product and the average product. 
B. Explain the law of diminishing returns. 
C. Plot the marginal product and average product curves and explain the relationship
between the two. 
D. What is the optimal number of workers for this business to hire? Label it on your graph in
(C)

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