Waec Model Questions Vol1 2023 Economics Question 4

Practice essay / theory question 4 from the 2023 Waec Model Questions Vol1 Economics examination. This question covers Production Theory, Short‑run Production, Law of Diminishing Returns, Cost Implications .

Waec Model Questions Vol1 2023 Economics Essay / Theory
Topics: Production Theory Short‑run Production Law of Diminishing Returns Cost Implications
Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • essay

A small manufacturing firm employs labour as its only variable input. The following data show the total product (TP) obtained each month as the number of labour units employed increases.

Question Parts

( a )
Define short‑run and long‑run production functions. Highlight two key differences between them.
( b )
Using the data below, calculate the marginal product (MP) and average product (AP) of labour for each additional unit of labour employed (from the 1st to the 5th unit). Identify the labour input at which diminishing marginal returns set in. Labour (L) : 0 1 2 3 4 5 Total Product (TP) : 0 20 45 66 80 90
( c )
Explain how the computed values illustrate the law of diminishing marginal returns and discuss two implications of this law for the firm’s short‑run cost curves.

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About This Question

This is Waec Model Questions Vol1 2023 Economics Question 4. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Economics examination.

The question covers Production Theory, Short‑run Production, Law of Diminishing Returns, Cost Implications .

View More Waec Model Questions Vol1 2023 Economics Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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