Started on Wednesday, 18 October 2023, 2:13
PM
State Finished
Completed on Wednesday, 18 October 2023, 2:26
PM
Time taken 12 mins 30 secs
Marks 14.00/15.00
Grade 93.33 out of 100.00
Question 1
Complete
Not graded
I con rm
that this assessment will be my own individual work;
that I will not communicate with anyone else in any
way during the completion of this assessment;
that I will not cheat in any way in completing and
submitting this assessment.
Units of Total product Average Marginal
labour (TP) product product
N (AP) (MP)
1 a. 8 8
2 18 b. 10
3 8
4 c. 7 4
The rst thing to remember when confronted by a table
like this is that you do not have to complete all the
blank columns or cells of the table. It is an
unnecessary waste of time. The values for only three
cells are required so concentrate on what is being
asked.
a. The total product of the rst unit of labour.
We know that production increased by 8 when we
added the rst unit of labour. Thus, the total product
(TP) of the rst unit is equal to the marginal product
(MP), that is, 8.
b. The marginal product of the second unit of labour
MP = ∆TP/∆units o f labour
18 − 8
= = 10
1
c. The average product of four units of labour
We know that the MP of the fourth unit is 4. In other
words, the TP increased by 4 when the fourth unit was
added. However, we do not have the TP of three units.
Calculate the TP of three units.
TP = AP x units of labour
= 8x3
= 24
.
TP increased by 4 (the MP) from 24 (the TP of three
units) to 28.
Total cost = total xed cost + total variable cost.
Note, that you will lose 50% of the mark for this
question if you choose the incorrect option.
If you are not sure about the answer and do not want
to guess, choose the “Unsure” option. You will neither
receive marks for the question nor will you lose marks
for choosing this option.
True
False
Unsure
The statement is true.
Total cost is indeed equal to the sum of total xed cost
and total variable cost.
Total cost represents the overall cost incurred by a rm
in the production of goods or services. It includes both
xed costs and variable costs.
Fixed costs are expenses that do not vary with the
level of production or output. These costs remain
constant regardless of the quantity produced.
Examples of xed costs include rent for a facility and
property taxes.
Variable costs, on the other hand, are costs that
change in proportion to the level of production. They
increase or decrease as the rm produces more or
fewer units of output, typically labour costs.
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