Answer to Question #288779 in Microeconomics for Bri

Question

1. Complete the table below and draw the TP, MP and AP curves.

Units of labour Total Production (TP) Marginal Product (MP) Average Product (AP)

0 0

1 20

2 50

3 90

4 120

5 140

6 150

7 150

8 140

(a) Indicated from which unit of labour does diminishing marginal returns occur ________

(b) On a marginal product curve the following

(i) Maximum total product

(ii) Increasing total product

(iii) Decreasing total product

Answer 1

Let's solve it in EXCEL

(a)Indicated from which unit of labour does diminishing marginal returns occur P=4

(b)

(i) Maximum total product P=3

(ii) Increasing total product from P=1 to P=3

(iii) Decreasing total product from P=4 to P=8