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
- 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?
- Using the table from problem #2, answer the following questions:
- Marginal cost equals minimum AVC between what two employment levels?
- 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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