Waec Model Questions Vol1 2022 Economics Question 4

Practice essay / theory question 4 from the 2022 Waec Model Questions Vol1 Economics examination. This question covers Production .

Waec Model Questions Vol1 2022 Economics Essay / Theory
Topic: Production
Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • essay

A small manufacturing firm produces wooden stools. The data below show the short‑run output (Q), total product (TP) of labour, variable cost (VC) and the market price of a stool (P = ₦15). Fixed cost (FC) is ₦20.

Question Parts

( a )
Using the data, compute the marginal product of labour (MP) and average product of labour (AP) for each additional unit of labour employed (from Q = 1 to Q = 6).
( b )
Identify the output level at which diminishing marginal returns first set in, and explain how you reached that conclusion.
( c )
Calculate the marginal cost (MC) for each output level (from Q = 1 to Q = 6).
( d )
Assuming the firm is a price‑taker, determine the profit‑maximising output. Show the comparison of marginal cost with marginal revenue (MR = price) and justify your choice.
( e )
Suggest one practical change in the production technique that could shift the marginal product curve upward, and briefly explain how it would affect profit‑maximising output.

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About This Question

This is Waec Model Questions Vol1 2022 Economics Question 4. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Economics examination.

The question covers Production .

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