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Review_Questions_for_Marginal_Product_Ma

# Review_Questions_for_Marginal_Product_Ma - d If MP is...

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092b3c2ae6b329905d2533c30de9963cd98a44e7.doc 1 1. Len’s body board factory rents equipment and shaping boards and hires students.  Table 1  shows Len’s total product schedule. Table 1 L (workers per day) Total Product (body boards per day) Marginal  Product Average  Product 0 0 1 20 2 44 3 60 4 72 5 80 6 84 7 86 a) Construct Len’s marginal product and average product schedules. b) Over what range of workers do marginal returns increase? c) After how many workers employed do marginal returns decrease? d) State the point of decreasing marginal returns on the marginal product curve. 2. Fill in the blanks for the following: a) If MP is rising (and is positive), then TP is ______ at a (n) ____ rate. b) If MP is falling (and is positive), then TP is ______ at a (n) _____ rate. c) If MP is zero, then TP is at its ______________________.

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Unformatted text preview: d) If MP is negative, then TP is _______________________. 092b3c2ae6b329905d2533c30de9963cd98a44e7.doc 2 e) If MP is greater than AP, then AP must be ____________. f) If MP is less than AP, then AP must be _______________. g) The point of decreasing marginal returns occurs ________. Question 3 pertains to Diagram 1, which shows total product for a sweater factory. Diagram 1 3. Decreasing returns begin when the _____ worker is hired. What is the marginal product of the second worker? 4. Use Table 2 to answer Question 4. Table 2 shows the costs incurred at Pete’s Peanut Farm. Complete Table 2: Table 2: Pete’s Peanut Farm L TP TVC TC AFC AVC ATC MC 100 1 10 35 2 24 70 3 38 105 4 44 140 092b3c2ae6b329905d2533c30de9963cd98a44e7.doc 3 5 47 175...
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Review_Questions_for_Marginal_Product_Ma - d If MP is...

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