Neco 2024 Economics Question 4

A small workshop produces hand‑woven bags. The table below shows the total output (TP) obtained at different levels of labour input (L) while capital is kept constant. | Labour input (hours) | Total product (bags) | |----------------------|----------------------| | 0 | 0 | | 2 | 30 | | 4 | 80 | | 6 | 130 | | 8 | 150 | |10 | 155 | Using this information, answer the following: a) Compute the marginal product (MP) and average product (AP) of labour for each labour interval. b) Identify the stage of production (Stage I, Stage II or Stage III) for each labour level based on the behaviour of MP and AP. c) The firm is currently employing 6 labour hours. Explain what will happen to total product and marginal product if an additional 2 labour hours are employed, and advise whether the firm should increase labour further.