Gce Model Questions Vol1 2018 Economics Question 4

Practice essay / theory question 4 from the 2018 Gce Model Questions Vol1 Economics examination. This question covers Production, Short‑run production, Marginal product, Average product, Returns to scale .

Gce Model Questions Vol1 2018 Economics Essay / Theory

Topics: Production Short‑run production Marginal product Average product Returns to scale

Question 4 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

A manufacturing firm produces widgets. In the short run the amount of capital is fixed, while labour can be varied. The table below records the output obtained for different numbers of workers employed. | Labour (L) – workers | Output (Q) – units | |----------------------|--------------------| | 0 | 0 | | 1 | 20 | | 2 | 45 | | 3 | 65 | | 4 | 80 | | 5 | 90 | Answer the following:

Question Parts

( a )

Calculate the marginal product (MP) and average product (AP) of labour for each additional worker from L = 1 to L = 5. Present your results in a clear table.

( b )

Identify the range of labour input over which diminishing marginal returns set in and explain, using the law of variable proportions, why this occurs.

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About This Question

This is Gce Model Questions Vol1 2018 Economics Question 4. It is one of the essay questions from the 2018 Gce Model Questions Vol1 Economics examination.

The question covers Production, Short‑run production, Marginal product, Average product, Returns to scale .

View More Gce Model Questions Vol1 2018 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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