Question

Use the following table to answer questions a through d.

Labor Input	Total Product	Marginal Product	Average Product
0	0	---	---
1	A	70	B
2	135	C	D
3	E	F	63
4	G	51	H
5	I	J	57
6	324	K	L

a. What is the value of A in the table?

b. What is the value of C in the table?

c. What is the value of B in the table?

d. What is the value of G in the table?

e. What is the value of J in the table?

f. What is the value of H in the table?

Answer 1

Labour input	Total Product	Marginal Product	Average Product = TP/Labour
0	0	-	-
1	70	70	70
2	135	65	67.5
3	189	54	63
4	240	51	60
5	285	45	57
6	324	39	54

Marginal Product is the additional product made by adding one more labor. MP = TP - TP(-1), or TP of current labour number - TP of previous labor numbers.

a. MP is the additional Product made by adding 1 labor, The additional product made was 70 so the total product = 0 + 70 = 70

b. C is the marginal product by adding the second labor = 135 - 70 = 65

c. B is the average product or Total product/labor

= 70/1 = 70

d. To get G we need the value of D, E, and F

D = 135/2 = 67.5

E = 63 * 3 = 189

F = 189 - 135 = 54

G = 189 + 51 = 240 ( 51 is the additional product made by adding 4th labor so total labor = total product from 1 less labor + marginal product by adding 1 more labor)

e. To get J we need H and I

H = G/4

= 60

I = 57 * 5 = 285

J = 285 - 240 = 35

f. H is 60 as calculated above