Problem Set 9 (CH13).docx - Problem Set 9(CH13 KWONG Wing Kai 20513986 Problem and Applications(3,4,5,7,8,9 Q3 a Marginal product of each hour spent

Problem Set 9 (CH13).docx - Problem Set 9(CH13 KWONG Wing...

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Problem Set 9 (CH13) KWONG Wing Kai 20513986 Problem and Applications (3,4,5,7,8,9) Q3. a) Marginal product of each hour spent fishing: Hours Fish Marginal Product 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 b) The fisherman’s production function: The production function becomes flatter when the hours spent fishing increases, causing the diminishing of marginal product. c) The graph has an upward slope because there is additional time for catching additional fish, while the graph is also convex since there are diminishing returns to fishing time when there is fewer additional fish with each additional hour spent fishing. Q4. a) Marginal product: Workers Output Marginal Product 0 0 - 1 20 20 2 50 30 3 90 40 4 120 30 5 140 20
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6 150 10 7 155 5 The marginal product rises at first, then declines because of diminishing marginal product. b) Total cost: Workers Output Marginal Product Total Cost 0 0 - 200 1 20 20 300 2 50 30 400 3 90 40 500 4 120 30 600 5 140 20 700 6 150 10 800 7 155 5 900 c) Average total cost: Workers Output Marginal Product Total Cost Average Total Cost 0 0 - 200 - 1 20 20 300 15 2 50 30 400 8 3 90 40 500 5.56
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