Fill in the blanks in the accompanying table shown at the bottom of the page and answer the following questions:

a. What happens to total product when marginal product is negative? 

b. What happens to average product when marginal product is greater than average product? 

c. What happens to average product when marginal product is less than average product? 

d. At what point does marginal product begin to decrease? 

e. At what point does marginal cost begin to increase? 

f. Summarize the relationship between marginal product and marginal cost. 

g. What happens to marginal costs when total product begins to fall? 

h. What is happening to average variable costs when they equal marginal costs? 

i. Marginal costs equal average variable costs between what output levels? 

j. What is happening to average total costs when they equal marginal costs? 

k. Marginal costs equal average total costs between what output levels?

Transcribed Image Text:

UNITS OF VARIABLE INPUT 0 1 2345678 TOTAL PRODUCT 0 6 15 27 37 45 50 52 50 MARGINAL AVERAGE PRODUCT PRODUCT PRICE OF INPUT $1 $1 $1 $1 $1 $1 $1 $1 $1 TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED COST $2 $2 $2 $2 $2 $2 $2 $2 $2 TOTAL COST AVERAGE TOTAL COST MARGINAL COST