Can anyone help me solve this question. I am stump and need some help. A. Fill i
ID: 1234870 • Letter: C
Question
Can anyone help me solve this question. I am stump and need some help.
A. Fill in the formula for MP and AP at the top of the column in the gray section within the table.
B. Fill in the missing values for MP and AP in the blue sections of the table.
Winsome Widget Factory
Quantity of Labor
Total Output
Marginal Product of Labor
Average Product of Labor
0
0
0
2
1
600
2
1,100
3
1,500
4
1,950
5
2,250
6
2,300
7
2,275
C. Identify the point of diminishing returns. Why do diminishing returns occur?
D. Identify the production levels where increasing and negative returns occur, if any.
Winsome Widget Factory
Quantity of Labor
Total Output
Marginal Product of Labor
Average Product of Labor
0
0
0
2
1
600
2
1,100
3
1,500
4
1,950
5
2,250
6
2,300
7
2,275
Explanation / Answer
Hmm okay, I can help you solve this. Here is the main thing you need to know. The marginal product is "Change in output that results from changing the labor input by one unit, all other factors remaining constant." definition thanks to Business Dictionary. Basically if you add another worker what will be the output difference? If it was 600 with 1 worker, then went to 1,100 with 2 workers the marginal product is 1,100-600=500 The Average Product of Labor, is basically how much work each worker puts in. Here is the formula average product = total product/variable input basically average product is = output/workers or quantity of labor. Here is the completed chart from top to bottom. Marginal Product of Labor=600,500,400,450,300,50,-25 Average Product of Labor=600,550,500,487.5,450,383.33,325 C.The point of diminishing returns starts at 2. They occur possible because of the cost to support workers. D. 4 provides increasing, the rest are downward. I really hope this helped, best of luck.
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