February 19, 2017

Homework Help: Microeconomics: Cost of Production

Posted by Anonymous on Monday, October 20, 2008 at 5:50am.

Please help me with this question!

Heaven Sub, a subway shop, has the following marginal product curve points for its hourly product:

(0.5, 13)
(1.5, 17)
(2.5, 15)
(3.5, 11)
(4.5, 9)

i) When labour increases from 2 to 3 workers, total product increases by _____ subs per hour.

ii) Assume that if there are no workers, Heaven Sub does not have any output. Find the points in order to plot the production function.

iii) Find the points to the average product curve at 1, 2, 3,4 or 5 workers.

iv) Marginal product and average product curves always intersect at the ________ of the _____ curve.

i) 13 because when I graphed the points, the third input or worker intersected at (3, 13)

ii) I don’t know how to find the production function because I only know the change in quantity of workers and subs per worker. I don’t know how to work backwards.

iii) The AP formula is AP = quantity/number of inputs. The change in quantity of workers and subs per worker are given, and not the original values. So, again, I don’t know how to do this question..

iv) max, AP according to my notes and I don't really understand the theory of it.

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