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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
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)
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