cf_costs_and_output_assignment -- C. Armijo - ECO1050...

ECO1050 – Microeconomics
Costs and Output Assignment Worksheet
Directions
This assignment deals with the calculation and graphing of the short-run relationship between
the quantity of labor employed, the output produced, and the cost of this output.
To create the graph, or graphs, for this assignment, use Microsoft Excel or the drawing tool in
Microsoft Word. Copy and paste the graph you create into this worksheet.
To complete this assignment, you must complete all of the following questions and activities.
Microeconomic Problem
1. Suppose a business finds that output varies according to the following schedule as it
adds more workers:
Workers Total Product Marginal Product Average Product
0 0 0 —
1 10 10 10
2 25 15 12.5
3 42 17 14
4 58 16 14.5
5 70 12 14
Fill in the marginal product and average product columns. Diminishing marginal returns is
encountered with the addition of which worker?