ECO 550 Week 3 Assignment: The following table shows data for a simple production function

ECO 550 Week 3 Assignment: Production and Cost Analysis

The following table shows data for a simple production function.

Capital (K) Labor (L) Total Product (TP) Average Product (AP) Marginal product (MP)

10 0 0
10 1 5
10 2 15
10 3 30
10 4 50
10 5 75
10 6 85
10 7 90
10 8 92
10 9 92
10 10 90

A. From the information in the table, calculate marginal and average products.
B. Graph the three functions (put total product on one graph and marginal and average products on another).
C. For what range of output does this function have diminishing marginal returns.
D. At what output is average product maximized?

Course: ECO 550 Managerial Economics and Globalization
School: Strayer University

  • : 25/05/2017
  • : 8