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Fill in the gaps in the table below.

Quantity of variable input
Total output
Marginal product of variable input
Average product of variable input
00

1225

2

300
3
300
41140

5
225
6

225

Short Answer

Expert verified

The following table is completed below.

Quantity of variable input
Total output
Marginal product of variable input
Average product of variable input
00--
1225225225
2600375300
3900300300
41140240285
51365225273
61350-15225

Step by step solution

01

The computation for TP, MP, and AP 

The total product (TP) can be computed from the AP in the following way:

TP = AP x Q

= 300 x 2

= 600

The marginal product (MP) refers to the extra output produced due to the employment of additional input. Here, the MP of the variable input (=2 units) is computed in the following way:

MP = TP2 - TP1

= 600 - 225

= 375

The average product (AP) refers to the output produced per unit of input. Here, the AP of the variable input (=4 units) is computed below.

AP=TPQ=11404=285

02

The completion of the table 

The given table is computed below.

Quantity of variable input
Total output
Marginal product of variable input
Average product of variable input
00--
1225225225
2600375300
3900300300
41140240285
51365225273
61350-15225

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Most popular questions from this chapter

Suppose a chair manufacturer is producing in the short-run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:

Number of workers
Number of chairs
110
218
324
428
530
628
725

a. Calculate the marginal and average product of labor for this production function.

b. Does this production function exhibit diminishing returns to labor? Explain.

c. Explain intuitively what might cause the marginal product of labor to become negative.

For each of the following examples, draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case?

a. A firm can hire only full-time employees to produce its output, or it can hire some combination of fulltime and part-time employees. For each full-time worker let go, the firm must hire an increasing number of temporary employees to maintain the same level of output.

b. A firm finds that it can always trade two units of labor for one unit of capital and still keep output constant.

c. A firm requires exactly two full-time workers to operate each piece of machinery in the factory

In Example 6.4, wheat is produced according to the production function

q = 100(K0.8L0.2)

a. Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing.

b. Does this production function exhibit increasing, decreasing, or constant returns to scale?

Do the following functions exhibit increasing, constant, or decreasing returns to scale? What happens to the marginal product of each individual factor as that factor is increased and the other factor held constant?

a. q = 3L + 2K

b. q = (2L + 2K)1/2

c. q = 3LK2

d. q = L1/2K1/2

e. q = 4L1/2 + 4K

The menu at Joe’s coffee shop consists of a variety of coffee drinks, pastries, and sandwiches. The marginal product of an additional worker can be defined as the number of customers that can be served by that worker in a given time period. Joe has been employing one worker but is considering hiring a second and a third. Explain why the marginal product of the second and third workers might be higher than the first. Why might you expect the marginal product of additional workers to diminish eventually?

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