Marginal product refers to the change in output or production divided by the change in variable inputs (labor). the total output produced for a given level of variable input (such as labor). the quantity of output produced divided by the quantity of labor (number of workers).
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- Select all that apply A production function can include many inputs. Which of the following are the most commonly used inputs? Land Capital Entrepreneurship Technology LaborThe 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)?Labor (workers per day) Total product (bicycles per day) 0 0 1 4 2 10 3 18 4 25 5 30 The above table shows the relationship between labor input and total product of producing bicycles. The marginal product of the 5th worker is equal to 5 bicycles. 6.25 bicycles. 30 bicycles. 6 bicycles.
- If the marginal value of some variables is above the average value of the variable:*the marginal value must be rising.the marginal value must be falling.the average value must be rising.the average value must be falling. The fixed costs of a firm are costs that stay the same regardless of*the amount of output produced.the price of the fixed input.the amount of the fixed input employed.whether the firm is in the short-run or the long-run. In the short run, TVC*is positive when output is zero.increases with increasing output.decreases when the firm is experiencing diminishing returns.decreases when the firm is experiencing increasing returns. In the short-run, when output is zero*TC is zero.TFC is zero.TVC is zero.AFC is zero. The MC curve must be*rising when TC is rising.less than AFC when the average cost is rising.greater than ATC when the average curve is rising.falling when the ATC curve lies below the marginal curve.The marginal product of labor is A) output that does not meet quality specifications. B) total product divided by labor. C) the change in total product divided by the increase in labor. D) a measure of labor.What is a production function? Response option group It is the production technology It is the relationship between inputs and the level of production It is the average product It is the marginal product
- Fill in the gaps in the table below. Quantity of Variable Input Marginal Product of Variable Input Average Product of Variable Input Total Output 1 225 2 300 3 300 4 1140 5 225 225 6Quantity of Labor (workers) Total Product (units per hour) 0 12 34 56 0 259 151817 The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the worker because A) 4th; the average product of labor is also increasing B) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker C) 3rd; the average product of labor is also increasing D) 5th; output declines with the 6th worker E) 5th; output is maximizedThe table shows the total production of a firm. If units of labour (L) increase, find below. Units of Labour Total Product (TP) Marginal Product (MP) Average Product (AP) 0 0 1 80 2 200 3 330 4 400 5 450 6 480 7 490 8 480 Compute the marginal product of labour (MP) from first to eighth units of labour. Now compute the average product (AP) of the various quantities of labour and enter them into the table. There are increasing return to labour from the first through the ---------------- units of labour and decreasing return from the --------------through eighth units. When total production is increasing, marginal product is (positive, negative) --------------- and when total production is decreasing, marginal product is ----------------
- 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 workerIf a firm's marginal product of labour is less than its average product of labour, then an increase in the quantity of labour it employs definitely will:a) Decrease the average product of labour.b) Not change the average product of labour.c) Increase the marginal product of labour.d) Decrease its total product.e) None of the preceding statements is correct.The table below shows the total product schedule for plastic bags. Each unit of labor costs $25 and the total cost of capital is $100. The selling price of the plastic bags in the market is $8. LabourTotal product (plastic bags per day) 1 2 15 3 35 4 50 15 60 16 65 What is the total costs (TC) of producing 65 plastic bags a day?