Table showing the Average and Marginal product of labour for a hypothetical firm (answer attached) - 14445

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Assignment 1

Complete the table (Table 1) below, then draw the following curves:

  • Short-run average product (AP) curve;
  • Short-run marginal product (MP) curve.

     Table showing the Average and Marginal product of labour for a hypothetical firm

Amount of labour( units)

Amount of capital(No. of machines)

Output of parts(Q, hundreds of parts)

Average product (Q/L)

Marginal product(?Q/?L)

  0

5

    0

-

-

  1

5

  49

49

49

  2

5

132

66

83

  3

5

243

81

**

  4

5

376

94

133

  5

5

525

**

149

  6

5

684

114

159

  6.666

5

792.59

120.09

***

  7

5

847

****

163

  8

5

1008

126

161

9

5

1161

****

***

10

5

1300

130

139

11

5

1419

***

119

12

5

1512

126

93

13

5

1573

121

****

14

5

1596

****

23

15

5

1575

105

******


Use the information from the completed table and the graphs to identify the three stages of production and explain why the firm’s short run production has only one ‘rational’ stage of production.

 Assignment #1 

Solution Description

Use the information from the completed table and the graphs to identify the

Attachments
COMPLETE SOLUTION.xls
COMPLETE SOLUTI...