Inputs of labor Total Product Marginal Product (MP) Average Product (AP) 0 0 --
ID: 1091011 • Letter: I
Question
Inputs of labor
Total Product
Marginal Product (MP)
Average Product (AP)
0
0
--
--
1
120
2
270
3
450
4
650
5
860
6
1050
7
1200
8
1300
9
1350
10
1360
i)Fill in the columns for MP and AP to complete the table above. (2pts)
ii)Does this production data illustrate the law of diminishing returns? Why or why not? (3pts)
You must include a brief explanation of approximately 25 words for written answers to receive full credit:
Inputs of labor
Total Product
Marginal Product (MP)
Average Product (AP)
0
0
--
--
1
120
2
270
3
450
4
650
5
860
6
1050
7
1200
8
1300
9
1350
10
1360
Explanation / Answer
136.00
Based on the production data, it illustrates the law of diminishing return. This is because there is a decrease in the marginal output of a production process as the factor of production (labor) is increased.
Hope this helps!
Inputs of labor Total Product Marginal Product (MP) Average Product (AP) 0 0 -- -- 1 120 120 120.00 2 270 150 135.00 3 450 180 150.00 4 650 200 162.50 5 860 210 172.00 6 1050 190 175.00 7 1200 150 171.43 8 1300 100 162.50 9 1350 50 150.00 10 1360 10136.00