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Test II. Compute the MP, AP and identify the stage in production for point A-I. Points Labor (in thousand man hours) Output (in million units
Test II. Compute the MP, AP and identify the stage in production for point A-I.
Points | Labor (in thousand man hours) | Output (in million units | Marginal Product | Average Product | Stage of Production | |
A | 2 | .02 | ||||
B | 7 | .35 | ||||
C | 9 | .78 | ||||
D | 15 | .78 | ||||
E | 22 | .65 | ||||
F | 27 | .58 | ||||
G | 31 | .02 | ||||
H | 35 | .015 | ||||
I | 40 | .01 | ||||
III.Compute the percentage change of input and output and the value of R and determine whether R is= increasing returns to scale, constant returns to scale or decreasing returns to scale.
Input | Percentage | Output | Percentage | Returns | Description | |||
Point | Period 1 | Period 2 | Change | Period 2 | Period 2 | Change | to Scale (R) | |
A | 120 | 240 | 300 | 600 | ||||
B | 220 | 380 | 440 | 760 | ||||
C | 420 | 560 | 840 | 1000 | ||||
D | 500 | 1000 | 700 | 2100 | ||||
E | 700 | 1400 | 5000 | 7800 |
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