Question
1. Complete the following table, where X is the input for the product of output Q. X TP X (=Q) MP X AP X 0
1. Complete the following table, where X is the input for the product of output Q.
X | TPX (=Q) | MPX | APX |
0 | 0 | ||
1 | 3 | ||
2 | 6 | ||
3 | 16 | ||
4 | 29 | ||
5 | 43 | ||
6 | 55 | ||
7 | 58 | ||
8 | 60 | ||
9 | 59 | ||
10 | 56 |
2. Plot the (i) total product, (ii) marginal product, and (iii) average product functions. (Note: Some relationships on the following graph may not appear exactly correct because the graph plots discrete, not continuous values. With smaller discrete intervals these problems disappear. You may want to try this.)
3. Determine the boundaries of the three stages of production.
4. Explain the law of diminishing marginal returns. Based on the answers above, show the occurrence of the law of diminishing marginal returns.
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
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