[Solution Library] A firm uses the inputs of fertilizer, labor and hot-houses to produce roses. Suppose that when the quantity of labor and hothouses is


Question: A firm uses the inputs of fertilizer, labor and hot-houses to produce roses. Suppose that when the quantity of labor and hothouses is fixed, the relationship between the quantity of fertilizer and the number of roses produced is given by the following table:

Tons of fertilizer/ month Number of roses/ month Tons of fertilizer/month Number of roses/ month
0 0 5 2500
1 500 6 2600
2 1000 7 2500
3 1700 8 2000
4 2200
  1. What is the average product of fertilizer when 4 tons are used?
  2. What is the marginal product of the sixth ton of fertilizer?
  3. Does this total product function exhibit diminishing marginal returns? If so, over what quantities of fertilizer do they occur?
  4. Does this total product function exhibit diminishing total returns? If so, over what quantities of fertilizer do they occur?

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Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document

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