Instructions: (10 - Points) Answer the following questions to the best of your ability.
Table 1
q TP (q) APL MPL
(1) 0
3
6
(2) 9
12
15
Equation (1) represents the production function for our firm. 18
21
a (3 - points) Using equations (1) and (2) and the definition of APL fill in Table 1. 24
27
b (1 - point) Using Excel draw a picture of the Total product curve from your data in Table 1. 30
33
c (2 - points) Using Excel draw a picture of the APL and MPL. 36
39
d (2 - points) What meaning does the APL carry. (This is two points so there should be at least one complete sentence.) 42
45
e (2 points) Why does diminishing returns to Labor occur? (Again, this should be a complete sentence at the very least.) 48
51
54
57
60