Q3. The labor (L) and total product (TP=Q) schedule for LaLa Island Inc, a firm making...

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Q3. The labor (L) and total product (TP=Q) schedule for LaLa Island Inc, a firm making boats, is described by the following weekly data. Construct this table with additional relevant columns in your answer script and answer the subsequent questions. (Past Year Question - Jan 2019) i) ii) iii) Labour (Workers) 0 1 2 3 4 5 6 7 8 9 10 Total Product (Boats) 0 1 3 6 10 15 21 26 30 33 35 Calculate the marginal product (MP) and average product (AP). Enter your answer in the table earlier constructed. (3 marks) Explain the relationship between these functions at output rates below 21 boats, and at output rates above 21 boats. Use MP and AP diagram to illustrate your answer (6 marks) Suppose the wage is RM 400 per labor, and labor is the only variable input. Meanwhile, the total fixed cost is RM 10,000. Calculate the firm's total cost (TC), total variable cost (TVC), total fixed cost (TFC), average total cost (ATC), average variable cost (AVC), average fixed cost (AFC) and marginal cost (MC). Enter your answer in the table earlier constructed. All values are in Ringgit Malaysia (RM) (11 marks) Q3. The labor (L) and total product (TP=Q) schedule for LaLa Island Inc, a firm making boats, is described by the following weekly data. Construct this table with additional relevant columns in your answer script and answer the subsequent questions. (Past Year Question - Jan 2019) i) ii) iii) Labour (Workers) 0 1 2 3 4 5 6 7 8 9 10 Total Product (Boats) 0 1 3 6 10 15 21 26 30 33 35 Calculate the marginal product (MP) and average product (AP). Enter your answer in the table earlier constructed. (3 marks) Explain the relationship between these functions at output rates below 21 boats, and at output rates above 21 boats. Use MP and AP diagram to illustrate your answer (6 marks) Suppose the wage is RM 400 per labor, and labor is the only variable input. Meanwhile, the total fixed cost is RM 10,000. Calculate the firm's total cost (TC), total variable cost (TVC), total fixed cost (TFC), average total cost (ATC), average variable cost (AVC), average fixed cost (AFC) and marginal cost (MC). Enter your answer in the table earlier constructed. All values are in Ringgit Malaysia (RM) (11 marks)

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LaLa Island Inc Labor and Production Schedule Labor L Total Product Q Marginal Product MP Average Product AP Total Cost TC Total Variable Cost TVC Tot... View the full answer