(On the relationship between Average Product, and Marginal Product) (2 points)

Suppose the production function for a local hops grower is as follows:

Number of units of labor	Bushels of Hops produced
1	20
2	92
3	200
4	320
5	400
6	440
7	440
8	400

1. What is the average product of labor when four units of labor is used? (Remember: AP = TP/L)

(0.6 points)(-Answer:

(b) What is the marginal product of the sixth unit of labor? (Remember: MP =TP/L)(0.6 points)(-

Answer:

(c) After how many units of labor do diminishing marginal returns set in?(0.6 points)(-

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1. At what level of output (not units of labor)does average product equal marginal product?(0.6 points)

(-

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1. When marginal product is negative, what happens to total product?(0.3 points)(-

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When marginal product is positive and falling, what happens to total product?(0.3 points) (-

Answer: