The data in the table below represents Total product (TP), for an agri-businessinvolved in potato production.Саpital(fixed factor)LaborMarginalphysicalproduct(MPPL)Оutput(units)Averagephysicalproduct(АPPL)(variable factor)orTotalphysicalproduct (TPP1)1010171022010339104551066106701077010867(i) Calculate the marginal product and average product value.(ii) At what point do diminishing marginal returns set in? And using thevalues of AP and MP obtained from part (i), plot the graphs of TP, AP andMP being careful to fully label the graph and explain briefly the law ofdiminishing marginal returns from your computation.(iii) How does the hypothesis of diminishing returns (MP& AP) influence thebehaviour of costs (MC& AC)?

Answered: physical |product (TPPL) (АPPL) (MP 1 7…

physical |product (TPPL) (АPPL) (MP 1 7 2 20 3 39 4 55 5 66 6 70 7 70 8 67 lculate the marginal product and average product value. what point do diminishing marginal returns set in? And

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Question

The data in the table below represents Total product (TP), for an agri-business
involved in potato production.
Саpital
(fixed factor)
Labor
Marginal
physical
product
(MPPL)
Оutput(units)
Average
physical
product
(АPPL)
(variable factor)
or
Total
physical
product (TPP1)
10
10
1
7
10
2
20
10
3
39
10
4
55
10
66
10
6
70
10
7
70
10
8
67
(i) Calculate the marginal product and average product value.
(ii) At what point do diminishing marginal returns set in? And using the
values of AP and MP obtained from part (i), plot the graphs of TP, AP and
MP being careful to fully label the graph and explain briefly the law of
diminishing marginal returns from your computation.
(iii) How does the hypothesis of diminishing returns (MP& AP) influence the
behaviour of costs (MC& AC)?

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