Problem Set Hats WS.pdf - Name Team Short-Run Production Function for Tony’s Hat Store Quantity of Input(workers hired Total Product(Total hats

# Problem Set Hats WS.pdf - Name Team Short-Run Production...

• Homework Help
• 2

This preview shows page 1 - 2 out of 2 pages.

Name: _________________________ Team: _________________________ Short-Run Production Function for Tony’s Hat Store Definitions: Total Product (TP)= total volume/amount of final output produced by a firm using given inputs in a given period of time Marginal Product (MP)= additional output produced asa result of employing an additional unit of the variable factor input Average Product (AP)= output per unit of factor inputs or the average of the total product per unit of input The Law of Diminishing Marginal Returns- at some point, adding an additional factor of production results in smaller increases in output Stage I: Increasing marginal returns MP increasing TP increasing Stage II: Decreasing marginal returns MP falling TP increasing Stage III: Negative marginal returns MP is negative TP decreasing Quantity of Input (workers hired) Total Product (Total hats produced) Marginal Product (additional hats from each worker) Average Product (hats per worker) 0 0 —- —- 1 10 10 10 2 25 15 12.5 3 45 20 15 4 60 15 15 5 70 10 14 6 75 5 12.5 7 70 -5 10

Subscribe to view the full document.

Name: _________________________ Team: _________________________ Questions: 1. How many hats can three workers make?
• Fall '17
• Roger Crispy
• Economics, Marginal product, Economics of production, total product

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes