OU Wk 3 Managerial Economics Calculating Average Product & Marginal Product Worksheet
Question Description
The following table shows data for a simple production function.
Capital (K) |
Labor (L) |
Total Product (TP) |
Average Product (AP) |
Marginal Product (MP) |
10 |
0 |
0 |
— |
— |
10 |
1 |
5 |
||
10 |
2 |
15 |
||
10 |
3 |
30 |
||
10 |
4 |
50 |
||
10 |
5 |
75 |
||
10 |
6 |
85 |
||
10 |
7 |
90 |
||
10 |
8 |
92 |
||
10 |
9 |
92 |
||
10 |
10 |
90 |
- From the information in the table, calculate marginal and average products.
- Graph the three functions (put total product on one graph and marginal and average products on another).
- For what range of output does this function have diminishing marginal returns?
- At what output is average product maximized?
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