Test II. Compute the MP, AP and identify the stage in production for point A-I.

Points	Labor (in thousand man hours)	Output (in million units	Marginal Product	Average Product	Stage of Production
A	2	.02
B	7	.35
C	9	.78
D	15	.78
E	22	.65
F	27	.58
G	31	.02
H	35	.015
I	40	.01

III.Compute the percentage change of input and output and the value of R and determine whether R is= increasing returns to scale, constant returns to scale or decreasing returns to scale.

	Input	Percentage	Output	Percentage	Returns	Description
Point	Period 1	Period 2	Change	Period 2	Period 2	Change	to Scale (R)
A	120	240		300	600
B	220	380		440	760
C	420	560		840	1000
D	500	1000		700	2100
E	700	1400		5000	7800