EQ7 answers Fall 2010

EQ7 answers Fall 2010 - (e) To what stage of production...

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AGEC 105 EQ #7 October 11, 2010 (3 pts) Labor (hours) Wheat Production (bushels) 20 60 30 75 1. (a) The relationship between labor and wheat production is technically referred to as the TPP curve or production function . (1/2 pt) (b) Labor is what type of input? variable (c) What is the MPP of labor? (d) What is the APP of labor when labor is 20 hours?
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Unformatted text preview: (e) To what stage of production does this situation correspond? Why? APP when Labor = 30 APP > MPP Stage 2 or APP Stage 2 (1/2 pt) (1/2 pt) (1/2 pt) (1 pt) bu/hr hours bu 5 . 1 10 15 = = = labor wheat MPP bu/hr hours bu 3 20 60 = = = labor TPP APP bu/hr 5 . 2 2 5 30 75 = = = APP...
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This document was uploaded on 12/13/2010.

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