Assignment 1
Complete the table (Table 1) below, then draw the following curves:
- Short-run average product (AP) curve;
- Short-run marginal product (MP) curve.
Table showing the Average and Marginal product of labour for a hypothetical firm
|
Amount of labour( units) |
Amount of capital(No. of machines) |
Output of parts(Q, hundreds of parts) |
Average product (Q/L) |
Marginal product( Q/ L) |
|
0 |
5 |
0 |
– |
– |
|
1 |
5 |
49 |
49 |
49 |
|
2 |
5 |
132 |
66 |
83 |
|
3 |
5 |
243 |
81 |
** |
|
4 |
5 |
376 |
94 |
133 |
|
5 |
5 |
525 |
** |
149 |
|
6 |
5 |
684 |
114 |
159 |
|
6.666 |
5 |
792.59 |
120.09 |
*** |
|
7 |
5 |
847 |
**** |
163 |
|
8 |
5 |
1008 |
126 |
161 |
|
9 |
5 |
1161 |
**** |
*** |
|
10 |
5 |
1300 |
130 |
139 |
|
11 |
5 |
1419 |
*** |
119 |
|
12 |
5 |
1512 |
126 |
93 |
|
13 |
5 |
1573 |
121 |
**** |
|
14 |
5 |
1596 |
**** |
23 |
|
15 |
5 |
1575 |
105 |
****** |
Use the information from the completed table and the graphs to identify thethree stages of production and explain why the firm s short run production has only one rational stage of production.
Assignment #1