Ch12Figures - Ch 12 Figures Figure 12.1 Supersonic Econs...

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Ch 12 Figures Figure 12.1 Supersonic Econ’s Production Function The table and graph show Supersonic Econ’s production function --- the number of paper airplanes that can be made by varying the number of workers employed. In the graph, the relationship is shown by the line labelled TP for total product. In addition to workers, the company has fixed factors of production --- art studio space to work in and capital of one brush and one pair of scissors --- and variable factors of paper and paint. More airplanes are made when more workers are employed. When 6 workers are employed in combination with the other factors of production, they produce 9 airplanes. Number of Workers Quantity of Airplanes 00 . 0 0 12 . 0 0 26 . 2 1 37 . 2 8 47 . 9 9 58 . 5 3 69 . 0 0 79 . 3 8 89 . 7 2 9 10.04 10 10.33 0 1 2 3 4 5 6 7 8 9 10 11 12 01234567891 0 Workers Airplanes TP Number of Quantity of 6 workers in a small workspace with a brush and scissors, paper and paint produce 9 planes
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Ch 12 Figures Figure 12.2 Supersonic Econ’s Average Product and Marginal Product of Labor The table and graph show Supersonic Econ’s average product of labor (AP L ) and marginal product of labor (MP L ) as more workers are used to make more planes. The marginal product initially increases as a result of specialization and then decreases as a result of bottlenecks caused by the fixed factors of production. The graph shows the relationship between the marginal and average product of labor. When MP L > AP L , AP L is increasing. When MP L < AP L , AP L is decreasing. And when MP L = AP L , AP L is at a maximum. MP L > AP L AP L increasing MP L AP L 0 1 2 3 4 5 0123456789 1 0 Number of Workers Airplanes / Worker Number of Workers Quantity of Airplanes Average Product of Labor Marginal Product of Labor 00 . 0 0 __ 1 2.00 2.00 2.00 2 6.21 3.11 4.21 3 7.28 2.43 1.07 4 7.99 2.00 0.71 5 8.53 1.71 0.54 6 9.00 1.50 0.47 7 9.38 1.34 0.38 8 9.72 1.22 0.35 9 10.04 1.12 0.32 10 10.33 1.03 0.29 MP L = AP L AP L at maximum MP L < AP L AP L decreasing
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Ch 12 Figures Table 12.1 Your Marginal and Average Score on Quizzes You take 5 quizzes in a class throughout the term. Your marginal score is the score for the next quiz you take. If your marginal score is higher than the average score, it brings the average up. If the marginal score is lower than the average score, the average score falls. Quiz Number Marginal Score Total Points Average Score 16 56 5 2 85 150 75 3 90 240 80 4 96 336 84 5 64 400 80 marginal score less than average score average score decreasing marginal score greater than average score average score increasing
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Ch 12 Figures Figure 12.3 An Increase in the Productivity of Supersonic Econ’s Workers The table shows the new and old production data as the number of workers making planes increases. The new quantity of airplanes produced is a third higher than the original quantity. Since the same number of workers make more planes than before, the new average product of labor is higher than the original one. Since an additional worker
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This note was uploaded on 01/24/2012 for the course ECON 101 taught by Professor Gerson during the Fall '08 term at University of Michigan.

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Ch12Figures - Ch 12 Figures Figure 12.1 Supersonic Econs...

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