Solution) Complete the table (Table 1) below, then draw the following curves: ? Short-run average product (AP)

Question: Complete the table (Table 1) below, then draw the following curves:

? Short-run average product (AP) curve;

? Short-run marginal product (MP) curve.

Table showing the Average and Marginal product of labor for a hypothetical firm

Amount of labour( units)	Amount of capital(No. of machines)	Output of parts(Q, hundreds of parts)	Average product (Q/L)	Marginal product(?Q/?L)
0	5	0	-	-
1	5	49	49	49
2	5	132	66	83
3	5	243	81	**
4	5	376	94	133
5	5	525	**	149
6	5	684	114	159
6.666	5	792.59	120.09	*******
7	5	847	********	163
8	5	1008	126	161
9	5	1161	********	*******
10	5	1300	130	139
11	5	1419	*******	119
12	5	1512	126	93
13	5	1573	121	********
14	5	1596	********	23
15	5	1575	105	******

Use the information from the completed table and the graphs to identify the three stages of production and explain why the firm’s short run production has only one ‘rational’ stage of production.

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See Solution: The answer consists of 4 pages
Deliverables: Word Document