Neco 2022 Economics Question 4

Practice essay / theory question 4 from the 2022 Neco Economics examination. This question covers Production .

Neco 2022 Economics Essay / Theory

Topic: Production

Question 4 NECO • 2022 • ECONOMICS • essay

A small bakery produces loaves of bread using labour as the only variable input while capital is fixed. The table below shows the total product (TP) of loaves produced per day at different numbers of workers employed. | Workers (L) | Total Product (TP) | |-------------|--------------------| | 1 | 20 | | 2 | 45 | | 3 | 75 | | 4 | 100 | | 5 | 120 | | 6 | 135 | | 7 | 145 | | 8 | 150 |

Question Parts

( a )

Compute the marginal product (MP) and average product (AP) of labour for each additional worker from the second worker onward. Present your results in a clear table.

( b )

Identify the stage of production (Stage I, II or III) for each level of labour based on the behaviour of MP, and state at which labour input the average product is maximum.

( c )

Discuss how the identified stage of production would affect the shape of the short‑run cost curves (total cost, average cost and marginal cost) for the bakery.

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About This Question

This is Neco 2022 Economics Question 4. It is one of the essay questions from the 2022 Neco Economics examination.

The question covers Production .

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