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Please show work a. Marginal and Average Product : GIVEN (Springfield Spring Cor

ID: 1177283 • Letter: P

Question

Please show work

a.       Marginal and Average Product :

GIVEN (Springfield Spring Corp.)

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)        Complete the table above.

ii)      Does this production data illustrate the law of diminishing returns? Why or why not?

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

MP = 0, 120, (270-120)/1 , (450-270)/1, (650-450)/1, (860-650)/1..............so on

AP will be = 120/1 , 270/2 , 450/3 , 650/4 , 860/5.............1360/10

yes it shows law of diminishing marginal utility