home3a - EC 1, Section 1 UCLA Winter, 2003 A. Bresnock...

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EC 1, Section 1 Student Name: UCLA TA Name/Section: Winter, 2003 A. Bresnock Homework Assignment 3 Answers (20 points) SuzeQ’s BogieBoards’ employs the workers shown below to craft its custom surfboards. The total amount of bogieboards produced by these workers is given as the total output (TP). Labor (workers per week) Total Output (TP L ) (per week) Marginal Output (MP L ) Average Output (AP L ) Total Value Product (TVP L) Marginal Value Product (MVP L) Total Cost of Inputs (TC) Marginal Cost of Inputs (MC) Total Profit or Loss 0 0 --- --- 0 --- $ 200 --- $ 200 1 40 40 40 $ 800 $ 800 800 $ 600 0 2 100 60 50 2,000 1,200 1,400 600 600 3 140 40 46.7 2,800 800 2,000 600 800 4 170 30 42.5 3,400 600 2,600 600 800 5 190 20 38 3,800 400 3,200 600 600 6 200 10 33.3 4,000 200 3,800 600 200 (a) First fill in the TP L , MP L and AP L in the table above. Then draw one carefully specified graph that shows these relationships below. Output (Q) TP AP MP Input (L) 0
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2 (b) What is the relationship between the average product and the marginal product when SuzeQ’s produces less than 100 bogieboards? MP > AP and brings AP up. (c) What is the relationship between the average product and the marginal product when SuzeQ’s produces more than 100 bogieboards? MP < AP and brings AP down.
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home3a - EC 1, Section 1 UCLA Winter, 2003 A. Bresnock...

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