Question: Use the information in the table to answer the questions below.
The amount of total output produced from various combinations of labor and capital.
|
|
|
Units of
|
Capital
|
|
|
|
|
1
|
2 3 4
|
|
|
1
2
3
4
5
|
50
|
120
|
160
|
180
|
|
Units
|
110
|
260
|
360
|
390
|
|
of
|
150
|
360
|
510
|
560
|
|
Labor
|
170
|
430
|
630
|
690
|
|
|
160
|
480
|
710
|
790
|
a. If the capital stock is fixed at one unit, how much does the third unit of labor add to total output?
b. If the capital stock is fixed at one unit, diminishing returns begin with the
c. If the capital stock is fixed at four units and there are three units of labor, what is the average product of labor?
d. If labor is fixed at three units, how much does the second unit of capital add to total output?