Table of Input and Output; Variable units of labour Fixed Assets (Hecteres of Land) Total Product (kg) Average Product (kg) Marginal product (kg) 1 3 8 8 - ...
Question 1 Report
Table of Input and Output;
| Variable units of labour | Fixed Assets (Hecteres of Land) | Total Product (kg) | Average Product (kg) | Marginal product (kg) |
| 1 | 3 | 8 | 8 | - |
| 2 | 3 | 18 | 9 | 10 |
| 3 | 3 | 36 | P | 18 |
| 4 | 3 | 48 | 12 | 12 |
| 5 | 3 | 55 | 11 | 7 |
| 6 | 3 | 60 | Q | 5 |
| 7 | 3 | 60 | 8.6 | S |
| 8 | 3 | 56 | 7 | T |
Use the table to answer the following questions:
(a) Complete table by calculating the missing figures P, Q, R, S, T.
(b) Draw the Total Product (TP) and Marginal Product (MP) curve in one diagram. (No graph sheet is required).
(c) Explain the relationship between TP and MP.
Answer Details
(a) Completion of the table
Average product is calculated as:
\[AP=\frac{TP}{L}\]
Marginal product is calculated as:
\[MP=\frac{\Delta TP}{\Delta L}\]
Thus:
\[P=\frac{36}{3}=12\text{ kg}\]
\[Q=\frac{60}{6}=10\text{ kg}\]
\[R=48-36=12\text{ kg}\]
\[S=60-60=0\text{ kg}\]
\[T=56-60=-4\text{ kg}\]
| Variable units of labour | Fixed asset: land (hectares) | Total product (kg) | Average product (kg) | Marginal product (kg) |
|---|---|---|---|---|
| 1 | 3 | 8 | 8 | – |
| 2 | 3 | 18 | 9 | 10 |
| 3 | 3 | 36 | 12 | 18 |
| 4 | 3 | 48 | 12 | 12 |
| 5 | 3 | 55 | 11 | 7 |
| 6 | 3 | 60 | 10 | 5 |
| 7 | 3 | 60 | 8.6 | 0 |
| 8 | 3 | 56 | 7 | -4 |
(b) Total Product and Marginal Product curves
(c) Relationship between TP and MP
- TP increases while MP is positive. From the first to the sixth worker, TP rises from 8 kg to 60 kg because each additional worker adds to output.
- MP rises initially, reaching its maximum value of 18 kg at the third worker. Thereafter, MP falls, showing diminishing marginal returns.
- TP reaches its maximum of 60 kg when MP is zero, at the seventh worker. The TP curve is therefore horizontal at this point.
- When MP becomes negative, as with the eighth worker where MP is \(-4\) kg, TP falls from 60 kg to 56 kg.
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