Question

Suppose that the production function is given as follows:

TP_L = 10L + 5L² + L³

Find the total product, Marginal product and average product when L = 5. 

Answer 1

When L = 5, then:

Total product is$TP = 10×5 + 5×5^2 + 5^3 = 300,$ Marginal product is $MP = TP'(L) = 10 + 10×5 + 3×5^2 = 135,$

and average product is $AP = TP/L = 10 + 5×5 + 5^2 = 60.$