Question

8. Say the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 9 are, respectively, 0, 5, 20, 32, 42, 50, 55, 58, 58, and 56. Marginal product is largest for the:
A. Second unit of variable input
B. Third unit of variable input
C. Seventh unit of variable input
D. Ninth unit of variable input

9. Say the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 9 are, respectively, 0, 5, 20, 32, 42, 50, 55, 58, 58, and 56. Diminishing marginal returns sets in with the addition of the:
A. First unit of input
B. Second unit of input
C. Third unit of input
D. Fourth unit of input

10. Say the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 9 are, respectively, 0, 5, 20, 32, 42, 50, 55, 58, 58, and 56. There are negative marginal returns when the:
A. Fifth unit of input is added
B. Sixth unit of input is added
C. Seventh unit of input is added
D. Ninth unit of input is added

11. Say the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 9 are, respectively, 0, 5, 20, 32, 42, 50, 55, 58, 58, and 56. With the addition of the second unit of input, the marginal product is:
A. 15 and the average product is 20
B. 25 and the average product is 10
C. 15 and the average product is 10
D. 10 and the average product is 15

12. Say the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 9 are, respectively, 0, 5, 20, 32, 42, 50, 55, 58, 58, and 56. Marginal product is zero when the total product is:
A. 0
B. 5
C. 56
D. 58

Answer 1

Units of variable inputs(L)	TP	MP = ∆TP/∆L	AP = TP/L
0	0
1	5	5	5.00
2	20	15	10.00
3	32	12	10.67
4	42	10	10.50
5	50	8	10.00
6	55	5	9.17
7	58	3	8.29
8	58	0	7.25
9	56	-2	6.22

8. Ans: Second unit of variable input

Explanation:

The MP of Second unit of variable input = 20 - 5 = 15 which is largest than other units.

9. Ans: Third unit of input

Explanation:

Diminishing return occurs when marginal product starts falling. In the above case MP starts falling at Third unit of input.

10. Ans: Ninth unit of input is added

Explanation:

When Ninth unit of input is added, MP = 56 - 58 = -2

11. Ans: 15 and the average product is 10

Explanation:

MP = 20 - 5 = 15

AP = 20 / 2 = 10

12. Ans: 58