Gce Model Questions Vol1 2021 Economics Question 4

Practice essay / theory question 4 from the 2021 Gce Model Questions Vol1 Economics examination. This question covers Production .

Gce Model Questions Vol1 2021 Economics Essay / Theory

Topic: Production

Question 4 GCE_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • essay

A firm produces a single product using a fixed amount of capital and varying numbers of labour units. The data below show the weekly output (units) obtained for each additional worker employed. | Labour (L) | Output (Q) | |------------|------------| | 0 | 0 | | 1 | 20 | | 2 | 45 | | 3 | 66 | | 4 | 80 | | 5 | 90 | Assume the weekly wage rate per worker is ₦500 and the fixed capital cost is ₦2,000. Answer the following questions.

Question Parts

( a )

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

( b )

Using the results from part (a), identify the stage of production (I, II or III) that the firm is in for each level of labour employed. Explain the basis of your identification.

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About This Question

This is Gce Model Questions Vol1 2021 Economics Question 4. It is one of the essay questions from the 2021 Gce Model Questions Vol1 Economics examination.

The question covers Production .

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