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# Tute_6answers - Introductory microeconomics ECON1001...

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Unformatted text preview: Introductory microeconomics ECON1001 Semester 1 2010 Tutorial 6 Week 7 1. Charlie’s Chocolates total product schedule is: Labour (workers per day) Output (boxes per day) 1 12 2 24 3 48 4 84 5 132 6 192 7 240 8 276 9 300 10 312 a. Draw the total product curve b. Calculate the average product of labour and draw the average product curve c. Calculate the marginal product of labour and draw the marginal product curve d. What is the relationship between the average product and marginal product when Charlie’s Chocolates produces (i) fewer than 276 boxes a day and (ii) more than 276 boxes a day? 1a. The graph of the total product curve is shown in figure 1. Figure 1 1b. The average product of labour is equal to total product divided by the quantity of labour employed. The schedule for the average product of labour is shown in table 2. The average product of labour curve is shown in figure 2. Total Product - Problem 2 50 100 150 200 250 300 350 1 2 3 4 5 6 7 8 9 10 Labour (workers per day) Output (boxes per day) Total Product - Problem 2 50 100 150 200 250 300 350 1 2 3 4 5 6 7 8 9 10 Labour (workers per day) Output (boxes per day) The average product curve is upward sloping when the number of workers is between 1 and 8, but it becomes downward sloping when 9 and 10 workers are employed. Table 2 Labour Output Average Product Output/Labour Marginal Product ∆ Output/ ∆ Labour 1 12 12.00 12 2 24 12.00 12 3 48 16.00 24 4 84 21.00 36 5 132 26.40 48 6 192 32.00 60 7 240 34.29 48 8 276 34.50 34....
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