Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The following table shows how the total output of skates (per month) changes when the quantity of the variable input (labour) changes. The rm's

image text in transcribed
1. The following table shows how the total output of skates (per month) changes when the quantity of the variable input (labour) changes. The rm's amount of capital is xed. Hours of Labour Pairs of Skates Average Marginal (per month) (per month) Product Product 100 200 120 260 140 350 160 580 180 720 200 780 220 800 240 310 a) Compute the average product of labour for each level of output and ll in the table. Plot the average product curve on a scale diagram (1 mark) h) Compute the marginal product of labour for each interval (that is between 100 and 120 hours, between 120 and 140 hours, and so on). Fill in the table and plot the marginal product curve on the same diagram. (1 mark) c) Is the \"law of diminishing marginal returns\" satised? Explain. (1 mark) (1) Explain the relationship between the marginal product of labour and the average product of labour. (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Christopher T.S. Ragan, Richard G Lipsey

14th canadian Edition

321866347, 978-0321866349

More Books

Students also viewed these Economics questions