The table below shows the workers engaged by an agricultural firm over a period of time. Study it and answer the questions that follow; Number of workers To...

(a) Completed table

Calculations

\[Z=AP_2=\frac{TP_2}{2}=\frac{50}{2}=25\]

\[Y=MP_4=TP_4-TP_3=80-70=10\]

\[X=TP_6=TP_5+MP_6=80+(-9.8)=70.2\]

Therefore: \(X=70.2\), \(Y=10\), and \(Z=25\).

(b)

1. Increasing returns: from 1 to 2 units of labour, as marginal product rises from 20 to 30.
2. Decreasing returns: from 3 to 4 units of labour, as marginal product falls from 20 to 10 while total product continues to rise.
3. Negative returns: at 6 units of labour, where marginal product is \(-9.8\) and total product falls.

(c) Law of diminishing returns

As successive units of a variable factor are added to fixed factors of production, the marginal product of the variable factor will initially increase, but after a certain point it begins to decline.

(d)(i) Total product and marginal product curves

(d)(ii) Relationships between total product and marginal product

1. When marginal product is positive, total product rises. When marginal product is zero at the fifth worker, total product remains at its maximum level of 80 units.
2. When marginal product becomes negative at the sixth worker, total product falls from 80 units to 70.2 units.