Problem-1: The table shows total production of a firm. If units of labour (L) increase, find below.2 marks

Units of Labour Total Product (TP) Marginal Product (MP) Average Product (AP)

0 0

1 80

2 200

3 330

4 400

5 450

6 480

7 490

8 480

a. Compute the marginal product of labour (MP) from first to eighth units of labour.

b. Now compute the average product (AP) of the various quantities of labour and enter them into table.

c. There are increasing return to labour from the first through the ---------------- units of labor and decreasing return from the --------------through eighth units.

d. When total production is increasing, marginal product is (positive, negative) --------------- and when total production is decreasing, marginal product is ----------------