Use the table below to answer questions 1-6 Show all work The production functio

Question

Use the table below to answer questions 1-6

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The production function for Good X:

1) Is the production function for good X exhibited in the above table for the long run or the short run? Explain your answer.

2) The marginal product of capital of producing 2,991 units of output (find point A) in the above table is equal to what?

3) The production function for good X in the above table exhibits increasing marginal returns to capital over what output range?

4) The production function for good X in the above table exhibits negative marginal returns to capital over what output range?

5) The production function for good X in the above table exhibits decreasing marginal returns to capital over what output range?

6) The average product of capital of producing 2,991 units of output (find point B) in the above table is equal to what?

    *Note: this question may be worded incorrectly / may need correction*

Explanation / Answer

ans. 1) the production function for good X exhibited in the above table is the short run.

because from the table we can make out labor is a fixed input (same number at all levels of output). But in the long run all inputs are variable, no input put is fixed. where as in the short at least one input is fixed. here labor(at least one input) is fixed so it is exhibits the short run production function.

Ans2.- 2991-2724=267/10 = 26.7

Ans3.- from 57 to 1524

Ans4.- from 3016 to 2945

Ans5.- from 2391 to 2945

Ans6.- 657/30=21.9

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