Q2) Complete the table and show your calculation No. of Total product Marginal product of Average product of variable input variable variable input inputs 18 30 4 20 130 6. 7 19.5 Does the production function stated in the table given above exhibit diminishing returns? If so, at what no. of units of variable inputs do diminishing marginal return begin?

Q2) Complete the table and show your calculation No. of Total product Marginal product of Average product of variable input variable variable input inputs 18 30 4 20 130 6. 7 19.5 Does the production function stated in the table given above exhibit diminishing returns? If so, at what no. of units of variable inputs do diminishing marginal return begin?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

Question

Q2) Complete the table and show your calculation
No. of
Total product
Marginal product of Average product of
variable input
variable
variable input
inputs
18
30
4
20
130
6.
7
19.5
Does the production function stated in the table given above exhibit diminishing returns?
If so, at what no. of units of variable inputs do diminishing marginal return begin?

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