Calculate the average product of labor and draw the average product curve.

INDIVIDUAL ASSIGNMENT 1 MICROECONOMICS USING MS EXCEL    

(Total Marks 5)      

Date of Submission on Blackboard: 30 April 2023              

Use the following table to work Problems 1 to 5.

The table sets out Sue’s Surfboards’ total product schedule.

Table 1: Surfboard Production

Labor

(workers per week)

Total Product
(surfboards per week)
Marginal Product Average product
0 0
1   30
2   70
3 120
4 160
5 190
6 210
7 220

 

QUESTIONS                                                                                                                   (3 MARKS)

  1. Draw the total product curve.
  2. Calculate the average product of labor and draw the average product curve.
  3. Calculate the marginal product of labor and draw the marginal product curve
  4. Over what output range does the firm experience diminishing marginal product of labor?
  5. Over what output range does the firm experience an increasing average product of labor but a diminishing marginal product of labor?

WORKSHEET 2                                                                          (2 MARKS)

 

Question 2) Surfboard Production Costs

Labor

(workers per week)

Total Product
(surfboards per week)
TFC
(SAR per surfboard)
TVC TOTAL COST AFC

 

AVC

 

ATC

 

MC
0 0 3000 0
1   30 3000 3000
2   70 3000 3500
3 120 3000 4000
4 160 3000 4500
5 190    3000 5000
6 210 3000 5500
7 220 3000 6000

 

  • Fill in the missing numbers from Table above for Total Fixed Costs (TFC), Total Costs (TC), Marginal Costs (MC), Average Variable Costs (AVC), Average Fixes Costs (AFC) and Average Total Costs (ATC)