Gce Model Questions Vol1 2020 Economics Question 4

Practice essay / theory question 4 from the 2020 Gce Model Questions Vol1 Economics examination. This question covers Production .

Gce Model Questions Vol1 2020 Economics Essay / Theory

Topic: Production

Question 4 GCE_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • essay

A small workshop employs labour as the only variable input in the short‑run. The table shows the amount of labour employed each week (number of workers) and the total output produced. | Labour (workers) | Total Output (units) | |------------------|----------------------| | 1 | 20 | | 2 | 45 | | 3 | 75 | | 4 | 100 | | 5 | 120 | | 6 | 130 | Using this data, answer the following:

Question Parts

( a )

Calculate the marginal product (MP) of labour and the average product (AP) of labour for each level of employment and present the results in a table.

( b )

From your calculations, identify the range of labour over which diminishing marginal returns set in and explain how you identified it.

( c )

Discuss how the shapes of the MP and AP curves reflect the law of diminishing returns and the concept of economies of scale in the short‑run.

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About This Question

This is Gce Model Questions Vol1 2020 Economics Question 4. It is one of the essay questions from the 2020 Gce Model Questions Vol1 Economics examination.

The question covers Production .

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