Variable Input | Total Product | Marginal Product |
0 | 0 | -- |
1 | 10 | 10 |
2 | 22 | 12 |
3 | 33 | 11 |
4 | 40 | 7 |
5 | 45 | 5 |
6 | 48 | 3 |
7 | 48 | 0 |
8 | 46 | -2 |
Marginal Product = Change in Total Product / Change in Variable input
For example at 2 units of variable input, marginal product will be
Marginal Product = 22 - 10 / 2 - 1
Marginal Product = 12
39) Marginal product of the eighth unit of variable input
Marginal Product = 46 - 48 / 8 - 7
Marginal Product = -2
Hence option B is correct
40) Stage 1 is when marginal product increases which is from 1 to 2 units
Stage 2 is when marginal product decreases which is from 3 to 7 units
Stage 3 is when marginal product is negative which is at 8 units
So the boundary between stage 2 and stage 3 will be between 7 and 8 units which will be 7.5.
Hence option B is correct
41) Marginal product of the fourth unit of variable input
Marginal Product = 40 - 33 / 4 - 3
Marginal Product = 7
Hence option C is correct
42) Average product if two units of the variable input are hired
Average Product = Total Product / Variable input
Average Product = 22 / 2
Average Product = 11
Hence option B is correct
Use Table 23-1 to answer Questions 39 through 43. Table 23-1 Fixed Input Variable Input Total...
Marginal Cost (dollars) Marginal Physical Total Total Product of Variable Fixed Variable Input Fixed Input Input Variable Cost Cost Output (units) (units) (units) (units) (dollars) (dollars) $500 $0 $500 $200 $500 $400 $500 $600 $500 $800 $500 $1000 Refer to Exhibit 21-3. The average variable cost of producing 45 units of output is a. S2.44 (E) b. S1.60. c. $2.00. d. S1.33. e. $13.33.
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