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
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
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 5P
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Question
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
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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