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A B C D E 1 L (Labor) Q (Total Product) MP (Marginal Product) AP (Average Product) 2 0 0 3 10 10 10 4

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A B C D E 1 L (Labor) Q (Total Product) MP (Marginal Product) AP (Average Product) 2 0 0 3 10 10 10 4 2 30 20 15 5 3 60 30 20 6 4 100 40 25 7 130 30 26 8 6 150 20 25 9 168 18 24 10 184 16 23 11 189 5 21 12 10 190 19 13 11 187 17 14 12 180 15 15 16 17 1. Explain when increasing returns occurs. 18 When the marginal product increases at a higher rate than the average product's increase. 19 This is shown in the table from the first unit of labor to the fourth unit of labor. 20 Explain when diminishing marginal returns occurs. 21 When the marginal product eventually decreases after increasing the input such as laborers. 22 This is shown in the table from the fifth unit of labor to the tenth unit of labor. 23 Explain when negative marginal returns occurs. 24 When the total product decreases and the marginal product becomes negative. 25 This is shown in the table from the eleventh unit of labor to the twelfth unit of labor

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