Question

7.1# of Truck Amount of labour Total Output Average Product of Labor Marginal Product of Labor

2 0 0 0 0

2 1 75 75 75

2 2 200 100 125

2 3 300 100 100

2 4 380 95 80

2 5 460 92 50

2 6 450 75 -10

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7.2

State the law of diminishing marginal returns. How is it illustrated by the data in the table of the proceeding question?

There is a proviso to this law that certain things be held constant: What are these? example of situation where the law of diminishing marginal returns is not applicable because these "other things" are likely to vary.


7.6

Consider your time spent studying as an input in the production of total points on an economic test. Assume that other inputs (what could the be?) are not varied. Draw the total average and marginal product cures. Will they have the general shapes shown in Figure 7.1 ? why or why not.

7.1 # of Truck Amount of labour Total Output Average Product of Labor Marginal Product of Labor 2 0 0 0 0 2 1 75 75 75 2 2 200 100 125 2 3 300 100
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