The table shows the total production of a firm. If units of labour (L) increase, find below. Units of Labour Total Product (TP) Marginal Product (MP) Average Product (AP) 0 0 1 80 2 200 3 330 4 400 5 450 6 480 7 490 8 480 Compute the marginal product of labour (MP) from first to eighth units of labour. Now compute the average product (AP) of the various quantities of labour and enter them into the table. There are increasing return to labour from the first through the ---------------- units of labour and decreasing return from the --------------through eighth units. When total production is increasing, marginal product is (positive, negative) --------------- and when total production is decreasing, marginal product is ----------------
The table shows the total production of a firm. If units of labour (L) increase, find below. Units of Labour Total Product (TP) Marginal Product (MP) Average Product (AP) 0 0 1 80 2 200 3 330 4 400 5 450 6 480 7 490 8 480 Compute the marginal product of labour (MP) from first to eighth units of labour. Now compute the average product (AP) of the various quantities of labour and enter them into the table. There are increasing return to labour from the first through the ---------------- units of labour and decreasing return from the --------------through eighth units. When total production is increasing, marginal product is (positive, negative) --------------- and when total production is decreasing, marginal product is ----------------
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 7P
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Question
The table shows the total production of a firm. If units of labour (L) increase, find below.
Units of Labour |
Total Product (TP) |
Marginal Product (MP) |
Average Product (AP) |
0 |
0 |
|
|
1 |
80 |
|
|
2 |
200 |
|
|
3 |
330 |
|
|
4 |
400 |
|
|
5 |
450 |
|
|
6 |
480 |
|
|
7 |
490 |
|
|
8 |
480 |
|
|
- Compute the marginal product of labour (MP) from first to eighth units of labour.
- Now compute the average product (AP) of the various quantities of labour and enter them into the table.
- There are increasing return to labour from the first through the ---------------- units of labour and decreasing return from the --------------through eighth units.
- When total production is increasing, marginal product is (positive, negative) --------------- and when total production is decreasing, marginal product is ----------------
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