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Problem 2 - Total, marginal, and average product The following table summarizes the short-run relationship between a firm's total labour input and its total output.
Problem 2 - Total, marginal, and average product
The following table summarizes the short-run relationship between a firm's total labour input and its total output. SHOW YOURWORK.
Labour Input | Total Product | Marginal Product | Average Product |
0 | 0 | --- | |
1 | 26 | ||
2 | 66 | ||
3 | 96 | ||
4 | 116 | ||
5 | 129 | ||
6 | 139 | ||
7 | 138 | ||
8 | 129 |
Fill in the columns labeled "Marginal Product" and "Average Product."
Over what range of labour input does the firm experience increasing marginal returns? Diminishing marginal returns? Negative marginal returns?
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