Question: In the table from problem #2, what is the level of employment at which diminishing returns begin? What happens to the marginal product of labor

  1. In the table from problem #2, what is the level of employment at which diminishing returns begin? What happens to the marginal product of labor and to marginal cost at this employment level?
  2. Using the table from problem #2, answer the following questions:
    1. Marginal cost equals minimum AVC between what two employment levels?
    2. Marginal cost equals minimum ATC between what two employment levels?
L K TP AP MP TVC TFC TC AFC AVC ATC MC
0 20 0 -- - 0 80 80 -- -- -- --
1 20 10 10 10 6 80 86 80 6 8.6 0.6
2 20 30 15 20 12 80 92 40 6 3.066667 0.3
3 20 60 20 30 18 80 98 26.66667 6 1.633333 0.2
4 20 100 25 40 24 80 104 20 6 1.04 0.15
5 20 150 30 50 30 80 110 16 6 0.733333 0.12
6 20 210 35 60 36 80 116 13.33333 6 0.552381 0.1
7 20 280 40 70 42 80 122 11.42857 6 0.435714 0.085714
8 20 360 45 80 48 80 128 10 6 0.355556 0.075
9 20 450 50 90 54 80 134 8.888889 6 0.297778 0.066667
10 20 550 55 100 60 80 140 8 6 0.254545 0.06
11 20 640 58.18182 90 66 80 146 7.272727 6 0.228125 0.066667
12 20 720 60 80 72 80 152 6.666667 6 0.211111 0.075
13 20 790 60.76923 70 78 80 158 6.153846 6 0.2 0.085714
14 20 850 60.71429 60 84 80 164 5.714286 6 0.192941 0.1
15 20 900 60 50 90 80 170 5.333333 6 0.188889 0.12
16 20 940 58.75 40 96 80 176 5 6 0.187234 0.15
17 20 970 57.05882 30 102 80 182 4.705882 6 0.187629 0.2
18 20 990 55 20 108 80 188 4.444444 6 0.189899 0.3
19 20 1000 52.63158 10 114 80 194 4.210526 6 0.194 0.6

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