Screen shot of the question

Question Four [10 marks] A firm uses the inputs of fertilizer, labor, and hothouses to produce roses. Suppose that when the quantity of labor and hothouses is fixed, the relationship between the quantity of fertilizer and the number of roses produced is given by the following table: Tons of fertilizer / No of roses/ month Tons of fertilizer / No of roses/ month month month 0 0 5 2500 500 6 2600 2 100 7 2500 3 1700 8 2000 4 2200 (Hint, write out the average and marginal product for each ton of fertilizer) a) What is the average product of fertilizer when 4 tons are used? (2m) b) What is the marginal product of the sixth ton of fertilizer? (2m) c) Does this total product function exhibit diminishing marginal returns? If so, over what quantities of fertilizer is it diminishing? (2m) d) Does this total product function exhibit diminishing total returns? If so, over what quantities of fertilizer is total product diminishing? (2m) e) What is the efficient level of output it must produce at? (2m)