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Average and Marginal Products, Diminishing Returns

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Problem:

The short run production function for a manufacturer of DVD drivers is as follows:
Input of Labor (workers per week) Total output of DVD drivers
0 0
1 25
2 60
3 85
4 105
5 115
6 120

Based on the information, calculate the averae physical product at each quantity of labor.

Part 2.
Using the information provided in the attachment calculate the marginal physical product of labor at each quantity of labor.

Part 3.
From the manufacturer of DVD drivers from part 1 and 2, at what point do diminshing marginal returns set in?

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https://brainmass.com/economics/production/average-and-marginal-products-diminishing-returns-232252

Attachments

Solution Preview

Please refer attached file for better clarity of tables and formulas.

Solution:

Part1.
The short run production function for a manufacturer of DVD drivers is as follows:  
Based on the information, calculate the averae physical product at each quantity of labor.

Input of Labor -L Total output of DVD drivers-Q Average Product=Total Output/Input of labor
(Workers Per week)
0 0 -
1 25 25.00
2 60 30.00 Maximum AP
3 ...

Solution Summary

Solution describes the steps for calculating average and marginal product of DVD's. It also identifies the point where diminishing returns take place.

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See Also This Related BrainMass Solution

Average Product of Labor and Diminishing Returns

Calculate the average
Number Of Workers Output
0 0
1 50
2 110
3 300
4 450
5 590
6 665
7 700
8 725
9 710
10 705

The table above shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. Calculate the marginal product of labor. Calculate the average product of labor. At what point does diminishing returns set in?
Use Excel to graph the Marginal and Average Product Curves and comment on the relationship between the two curves.
Discuss the problems encountered (if any), when graphing the curves in Excel.

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