2.1 The following table gives total output or total product as a function of labor units used. Labor Total Output 30 54 72 84 90 a. Define diminishing returns. b. Does the table indicate a situation of diminishing returns? Explain your answer.

Refer to the figure at right. At which point on the total product curve is the average product of labor the highest? A. Point A B. Point B C. Point C D. Point D E. None of the above

Suppose that a firm has a production function given by: q= 10 L² K. The firm has 10 units of capital in the short run. Which of the following will describe the marginal product of labor (MPL) for this production function? Select one: a. Constant Marginal Returns to Labor b. Increasing Marginal Returns to Labor O c. Decreasing Marginal Returns to Labor

Which of the following describes the law of diminishing returns to labor?     A. When one more worker got hired their marginal product was negative   B. When one more worker got hired total product of the firm went down   C. When one more worker got hired their marginal product was lower than the marginal product of the previous worker

Output per month Figure 6.1 A B C D E Labor per month Refer to Figure 6.1. At which point on the total product curve is the average product of labor the highest?

Production Total Product Total Fixed Cost Total variable cost Total Cost Average fixed cost Average variable cost Average Total Cost Marginal Cost 0   0           1   25           2   45           3   60           4   70           5   85           6   105           7   135           8   180           9   240           10   315                             Assume that fixed costs are $50, labor is the only variable input and its costs are reflected completely in the costs above. Complete the table Graph AFC, AVC, ATC, and MC Explain how increasing returns and decreasing returns are depicted in your graph If the labor input increased by $10 at every unit of production, what would be the effect on your graphs?

Explain what is meant by and what causes "Diminishing Marginal Product". Why is it only relevant in the short run?

Complete the following table. Find out the total product (TP), average product (AP), marginal product (MP) and draw a graph of TP, AP, MP and also explain the stage of production. if the fixed price of land is 1000 and firm pay 750 to each worker then calculate, Fixed cost, variable Cost, Marginal Cost, Average variable Cost (AVC), Average Fixed Cost(AFC), and Average total cost(ATC). Labor Total Product               Average Product Marginal Product 0 0     1 8     2 18     3 25     4 30     5 33     6 34

If the cost of an oven is $500, what is the marginal product per dollar spent on capital for the second oven? Read again before you answer. Labor Total Product Capital (ovens) (workers) (cakes) 8 6,000 8 10,000 8 13,000 Type your numeric answer and submit 123

2. in the table below, the average product of labor at L=3 is: 1 2 7 15 20 a. 0.2 b. 2 c.8 d. 5 e. 3