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- (a) Complete the following table and draw the corresponding graphs. Capital inputs Labor inputs Total product Average product Marginal product 20 0 0 20 1 15 20 2 34 20 3 51 20 4 65 20 5 74 20 6 80 20 7 80 20 8 75 (b) What is relationship between MP and AP? Explain why MP first rises, then declines and ultimately becomes negative? (c) Whether the above phenomenon is long run or short run and why? (d) Does law of diminishing marginal returns holds in above scenario? Why and why not.Match the term below to it's formula definition: total product (TF (Click for List) TVC Q AP variable factor TVC + TFC AVC *Q AP QA firm produces good Y with just 2 factors: Capital which is fixed in supply and labour which is variable. Labour (units) 1 2 3 4 6 7 8 Total Product 8 15 24 30 35 37 38 38 36 (TP) in Units Average Product (AP) in units Marginal Product (MP) in units a) Fill in the values of AP and MP. b) Sketch TP, AP and MP in one diagram. c) Identify the stages of production in the diagram. d) Explain why the firm still hire labour even though it is in the range of diminishing returns? e) What is the number of workers after which diminishing marginal returns starts? f) Is this a short run or long run phenomenon?
- A firm produces good Y with just 2 factors: Capital which is fixed in supply and labour which is variable. Labour (units) 1 4 5 7 8 9 Total Product 8 15 24 30 35 37 38 38 36 (TP) in Units Average Product (AP) in units Marginal Product (MP) in units a) Fill in the values of AP and MP. b) Sketch TP, AP and MP in one diagram. c) Identify the stages of production in the diagram. d) Explain why the firm still hire labour even though it is in the range of diminishing returns? e) What is the number of workers after which diminishing marginal returns starts?. f) Is this a short run or long run phenomenon? Question 2 The table below shows the average cost (AC) for a purely competitive market. The average revenue (AR) is constant at RM5 per unit and the firm's total fixed cost (TFC) is RM4. Output (Units) Average Cost (RM) Marginal Cost (RM) Total Total Cost Marginal Revenue (RM) Revenue (RM) (RM) 8.0 2 5.5 3 4.0 4 3.5 3.8 6 4.5 7 6.0 a) Fill in the values for total revenue (TR), total cost (TC)…In our paper airplane company, some inputs were fixed and some were variable. Match the input to whether it was VARIABLE or FIXED. Paper- Stapler- Staples- Employees- Production space-Make a table to complete AP and MP. Then, draw a suitable diagram to show the production theory in this case. Below is the table for the reference. Input X Input Y Total Product (TP/Q) Average Product (AP) Marginal Product (MP) 1 0 0 1 1 20 1 2 80 1 3 180 1 4 230 1 5 270 1 6 270 1 7 210
- Question Establish input demand function in case of multiple variable inputsThe data in the table below represents Total product (TP), for an agri-business involved in potato production. Capital (fixed factor) Labor (variable factor) Output(units) or Total physical product (TPPL) Average physical product (APPL) Marginal physical product (MPPL) 10 0 0 10 1 7 10 2 20 10 3 39 10 4 55 10 5 66 10 6 70 10 7 70 10 8 67 Calculate the marginal product and average product value. At what point do diminishing marginal returns set in? And using the values of AP and MP obtained from part (i), plot the graphs of TP, AP and MP being careful to fully label the graph and explain briefly the law of diminishing marginal returns from your computation. How does the hypothesis of diminishing returns (MP& AP) influence the behaviour of costs (MC& AC)?1. Total, average, and marginal physical product Undercover World, a book shop, has the following marginal physical product curve (labeled MPP) for its hourly production. Note: Marginal values are sometimes plotted between integers (to indicate that they represent changes incurred in moving from one integer to the next), and sometimes they are plotted directly on the integers with which they are associated. For the context of this graph, they are plotted between integers. For example, if the marginal physical product from one unit of labor to two is x, this point is plotted at (1.5, x). MPP and APP (Books per hour) 20 18 16 14 2 0 O O 2 3 QUANTITY OF LABOR MPP O 4 5 When labor increases from four to five workers, total physical product APP by per hour.
- With the data provided in the following table it is requested: (a) Calculate the marginal product (b) Calculate the average product c) In a graph plane: total product, marginal product and average product. d) Interpret each of the terms graphed. e) Based on the results explain the theory and function of production. Marginal Product Work units 0 1 2 3 4 5 Total product 0 2,000 3,000 3,500 3,800 3,900 Average ProductQuestion 3: The data in the table below represents Total product (TP), for an agri-business involved in potato production. Capital (fixed factor) Labor (variable factor) Output(units) or Total physical product (TPPL) Average physical product (APPL) Marginal physical product (MPPL) 10 0 0 10 1 7 10 2 20 10 3 39 10 4 55 10 5 66 10 6 70 10 7 70 10 8 67 Calculate the marginal product and average product value. At what point do diminishing marginal returns set in? And using the values of AP and MP obtained from part (i), plot the graphs of TP, AP and MP being careful to fully label the graph and explain briefly the law of diminishing marginal returns from your computation. How does the hypothesis of diminishing returns (MP& AP) influence the behaviour of costs (MC& AC)?A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: Hours Fish (pounds) 0 0 1 10 2 18 3 24 4 28 5 30 What is the marginal product of the 4th hour spent fishing? Question 8 options: 8 4 6 2