Production The graph below is the total product curve for producing clocks. a. A

Question

Production

The graph below is the total product curve for producing clocks.

a. At what level of labor do diminishing returns kick in? How do you know this?

b. At what level of labor is the APL at its maximum? How do you know this?

c. At what level of labor is the MPL at its maximum? How do you know this?

d. Draw the MPL and APL curves from this total product curve.

3. Draw four short-run total product curves, each associated with a different level of capital. Derive an isoquant from these total product curves. Be sure to assign numbers to capital and labor that correspond to diminishing marginal products of capital and labor.

450 400 350 300 250 200 150 100 50 0 123 4 5678 9 10 11 12

Explanation / Answer

a) AT 12 labor. because, at start total product is rising at increaing rate. when tp is at maximum. then it starts declining. therefore, at 12 labor total product is maximum. therefore after 12 labor, diminishing returns kick.

b) APL is at maximum of 9 labor. because APL is maximum at highest slope of line from origin .

c) at 4 labor, MPL is maximum. because MPL is maximum at inflection point.

d)

quantity total product marginal product average product 0 0 - - 1 15 15 15 2 45 30 22.5 3 90 45 30 4 150 60 37.5 5 200 50 40 6 240 40 40 7 280 40 40 8 320 40 40 9 360 40 40 10 390 30 39 11 410 20 37.2 12 420 10 35

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.