Question

21. Refer to the above graph. It shows the marginal product of labor (MP) and the average product of labor (APL). At which point above does diminishing marginal returns set in? A. Point A B. Point B C. Point C D. Point D Assume that the only variable resource used to produce output is labor. Amount of Labor Total Product 6 1 16 2 24 3 30 4 34 36 22. Refer to the above table. The marginal product of the fourth unit of labor is: A. 4 units of output B. 6 units of output C. 8 units of output D. 30 units of output TP MP TP TP MP AP AP MP 23. Which of the above properly depicts the relationships TP, AP, and MP? A Graph A B. Graph B C. Graph C D. Graph D

Answer 1

22) Marginal product =change in total output/change in labor

= 30-24/4-3

= 6

option(B)

23) The relationship between TP,AP and MP is shown by the

Graph D

As TP increases, AP and MP rises where MP>AP

Next, MP<AP but positive and in the last stage, TP falls so MP is negative

option(D)