Marginal Analysis: explained
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Assignment 1
Using the information in the following table:
a- Complete the last 2 columns by replacing the * with the correct values.
b- Draw the following curves in one chart
? Short-run average product (AP) curve;
? Short-run marginal product (MP) curve.
Table showing the Average and Marginal product of labour for a hypothetical firm
Amount of labour( units) Amount of capital(No. of machines) Output of parts(Q, hundreds of parts) Average product (Q/L) Marginal product(∆Q/∆L)
0 5 0 - -
1 5 49 49 49
2 5 132 66 83
3 5 243 81 *
4 5 376 94 133
5 5 525 * 149
6 5 684 114 159
6.6 5 792.59 120.09 *
7 5 847 * 163
8 5 1008 126 161
9 5 1161 * *
10 5 1300 130 139
11 5 1419 * 119
12 5 1512 126 93
13 5 1573 121 *
14 5 1596 * 23
15 5 1575 105 *
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Solution Summary
The solution goes into a great amount of detail in order to answer the several questions being asked in the attachment. Step by step solution is given for all problems which makes it easy for anyone with a basic understanding of economics to follow along. Overall, an excellent response to the question.
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