With appropriate illustrations fully distinguish between the following: i. PRODUCTION FUNCTION and PRODUCTIVITY ii. AVERAGE PRODUCTIVITY and MARGINAL PRODUCTIVITY iii. TECHNICAL efficiency and ECONOMIC efficiency iv. DIMINISHING RETURNS to a factor and DECREASING RETURNS to scale

With appropriate illustrations fully distinguish between the following: i. PRODUCTION FUNCTION and PRODUCTIVITY ii. AVERAGE PRODUCTIVITY and MARGINAL PRODUCTIVITY iii. TECHNICAL efficiency and ECONOMIC efficiency iv. DIMINISHING RETURNS to a factor and DECREASING RETURNS to scale

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 2QFR

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With appropriate illustrations fully distinguish between the following:

i. PRODUCTION FUNCTION and PRODUCTIVITY

ii. AVERAGE PRODUCTIVITY and MARGINAL PRODUCTIVITY

iii. TECHNICAL efficiency and ECONOMIC efficiency

iv. DIMINISHING RETURNS to a factor and DECREASING RETURNS to scale

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With appropriate illustrations fully distinguish between the following: i.PRODUCTION FUNCTION and PRODUCTIVITY; ii.AVERAGE PRODUCTIVITY and MARGINAL PRODUCTIVITY iii.TECHNICAL efficiency and ECONOMIC efficiency iv.DIMINISHING RETURNS to a factor and DECREASING RETURNS to scale
The table below shows the total production of a firm as the quantity of labor employed increases. The quantities of all other resources employed are constant. Compute the marginal and average products and enter them in the table. (a) At what levels are there increasing returns to labor and at what levels are there decreasing returns to labor? (b) Describe the relationship between the total product and marginal product. (c) Describe the relationship between marginal and average product. B) For the following three cases, use a midpoints formula to calculate the coefficient for the cross elasticity of demand and identify the type of relationship between the two products. (a) The quantity demanded for product A increases from 30 to 40 as the price of product B increases from $0.10 to $0.20. Elasticity: ______ Relationship: ________________ (b) The quantity demanded for product A decreases from 3000 to 1500 as the price of good B increases from $5 to…
Question 2 The data of average productivity for each number of workers for a firm are given in the table below. Table 2 Number of workers Total product Marginal product Average productivity 1 2 10 4 12 11 6. 10 a) Complete the table by calculating the Total Product of Labor and Marginal Product of Labor corresponding to each number of workers. b) At which number workers does the Law of Diminishing Marginal Returns start working and why? c) Differentiate between economies of scale and return to scales?
Question 4.4. Which expression is another way of saying "marginal cost"? Scarce resources Additional cost Opportunity cost Unrecognized cost Question 5.5. Which is not a factor of production? Money Land Labor Capital
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Name Time Started Time Finished Variable input (Labor) 0 10 20 1. Define the following terms: production function, average product, marginal product, law of diminishing marginal returns, constant returns to scale, increasing returns to scale and decreasing returns to scale. 2. Complete the table below: 30 40 50 60 THEORY OF PRODUCTION Activity No. 6 70 80 90 100 110 120 130 140 Total Product 0 250 600 1200 1900 2700 3600 4400 5000 5425 5700 5825 5900 Course & Year Date Performed 5925 5875 Average Product Marginal Product With the values in the above table, plot Total Product (TP), Average Product (AP) and Marginal Product (MP) in a single graph with units of product at the vertical axis and labor units at the horizontal axis. You can also use two (2)graphs (TP above AP and MP curves) Label your graphs properly. Use graphing paper for your curves if you do not have computer/laptop access but insert graph is recommended. 3. Describe the shapes of the curves drawn. What relationship can…
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