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