Question
You are given the following information about the output of good X as successive workers are added to a fixed amount of land and capital
You are given the following information about the output of good X as successive workers are added to a fixed amount of land and capital equipment.
Number of workers101112 13141516
Total output (unit of X)100121144169189195200
a)At what level of employment does Marginal Product (MP) become a maximum?
(4 Marks)
b)At what level of employment does Average Product (AP) become a maximum?
(4 Marks)
c)At what level of employment do diminishing returns set in?
(4 Marks)
d)Can you determine from this information how many workers the firm will employ?Explain your answer.
(4 Marks)
e)Draw graphs to show all the relationships
(4 Marks)
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Inflation, Unemployment And Capital Malformations
Authors: Bernard Schmitt, Xavier Bradley, Alvaro Cencini
1st Edition
0429767064, 9780429767067
