The table below shows the total production of a firm as the quantity of labor employed increases. The quantities of all other resources employed are constant. Compute the marginal and average products and enter them in the table.

input of labor total product marginal product of labor average of product
0 0 — —
1 40 _____ _____
2 100 _____ _____
3 165 _____ _____
4 200 _____ _____
5 225 _____ _____
6 240 _____ _____
7 245 _____ _____
8 240 _____ _____

(a) At what levels are there increasing returns to labor and at what levels are there decreasing returns to labor?
(b) Describe the relationship between the total product and marginal product.
(c) Describe the relationship bettween marginal and average product.

Answer rating: 100% (QA)

The table with the values of Total Product Marginal Product Average Product is shown as follows Input Total Product Marginal Product Average Product 0 ... View the full answer