Question

- I need help on the 1st question which is more relevant to graphing the APP and MPP curve. I also want to understand and fully analyze at which level of output "law of diminishing return" starts to show as well as determining the degree of APP and MPP when MPP goes through the elevated APP.

- For the second one, I have the inability in understanding how to plot the ATC, AVC, and MC in the particular diagram. Also to what degree is AVC and ATC the lowest and highest after finishing the table and completing the diagram.

I appreciate your time and offer. Hopefully , I will hear a detail-oriented and meticulous answer to these part I and II questions. I look forward to hearing from you. Thank you very much for your time.

LAGCC-Introduction to Microeconomics Homework 5 (4/23): chapter 22 Student Name: Tussf Rahman - Do NOT copy homework from another student. Both may be penalized. - Write your answers clearly, illegible answer may be penalized - Write "Homework 5 and your full name on it - It must be submitted by 11:59PM, 5/3 (Sunday). No exception! - When emailing the assignment, write email subject heading "1818 - HW5 answer your full name" and add your full name inside message - Also when you send homework attachment, make sure file name includes "HW5-your full name" You should show how to get the results. PART I. (6 points) Using the table below 1. Fill out the table. 2. Plot "APP" and "MP" in one diagram 3. At which level of output does law of diminishing return start to appear? 4. At which level of output does MPP curve cross APP curve? 5. Specify level of APP and MPP when MPP cross the highest APP. Does MPP cross the highest APP? 6. Briefly explain (using 1 or 2 sentences) why "law of diminishing MPP is working L APP MPP NA 40 150 200 240 270 290 300 => Next Page Page 1 of 2

  

Answer 1

L	Q	APP= Q/ L	MPP= TPn- TPn-1
0	0	-	-
1	40	40	40
2	90	45	50
3	150	50	60
4	200	50	50
5	240	48	40
6	270	45	30
7	290	41.42857143	20
8	300	37.5	10

APP=Q/L- -MPP= TPn-TPn-1- 1 2 3 4 5 6 7 8

3. at a level of output equal to 200 law of diminishing return sets in. at this level of output Marginal product starts declining and is equal to average products

4 at a level of output 200 units MP and AP are equal and cross to each other .

5. at level of output 200 MP and AP both are equal to 50 and MP cut the highest APP at the same level of output.

yes MPP cross the highest APP after this level APP also start declining.

6. law of diminishing MPP starts in as we know labor is variable factor and other factor like capital is Fixed. so when variable factors is increased or combined with fixed factors initially it increase MP per unit of labor but when fixed factors exhausted and not able to generate good amount of output so it start declining. more labor is used for fixed factor of production that start generating less and less output per unit of labor.

PART II

Q	TFC	TVC= = TC- TFC	TC	AFC= TC/ Q	AVC= TVC/ Q	ATC= TC/ Q	MC= TCn-TCn-1
0	20	0	20	-	-	-	-
1	20	20	40	20	20	40	20
2	20	28	48	10	14	24	8
3	20	35	55	6.666666667	11.66666667	18.3333333	7
4	20	40	60	5	10	15	5
5	20	50	70	4	10	14	10
6	20	65	85	3.333333333	10.83333333	14.1666667	15
7	20	85	105	2.857142857	12.14285714	15	20
8	20	110	130	2.5	13.75	16.25	25
9	20	140	160	2.222222222	15.55555556	17.7777778	30
** at zero level of output TC= TFC

AVC- ATC- MC 1 2 3 4 5 6 7 8 9

3.at 5th unit of output both are equal that is AVC= MC= 10= 10.

4. AVC is lowest as it is decreasing so it will be lowest

5.at level of 6th unit both ATC and MC would be equal approximately.

6. at the level of output from (5). ATC is highest approximately. as it is increase from this unit so it is highest from this level.