Question: (input) Currant Bushes (output) Electricity (watts) APP MPP 0 0 2 10 5 5 4 35 12.5 8.75 6 45 5 7.5 8 50 2.5
| (input) Currant Bushes | (output) Electricity (watts) |
APP |
MPP |
| 0 | 0 |
|
|
| 2 | 10 | 5 | 5 |
| 4 | 35 | 12.5 | 8.75 |
| 6 | 45 | 5 | 7.5 |
| 8 | 50 | 2.5 | 6.25 |
| 10 | 52 | 1 | 5.2 |
| 12 | 48 | -2 | 4 |
1. Compute MPP and APP and place the values in the table above. 2. Graph the Production Function (TPP), Marginal Physical Product (MPP) and Average Physical Product (APP) on a separate sheet of paper. Be sure to completely label the graph for full credit. 3. Point out the stages of production on the graph. 4. Graphically show the Point of Diminishing Returns on both TPP and MPP. Clearly label both as Point D. 5. At what level of INPUT USAGE does diminishing returns begin? (i.e. Where is the Point of Diminishing Returns?)
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