3 Fill in the blanks of the following table of Units of var

3) Fill in the blanks of the following table # of Units of variable input Total Output # of units Marginal Product of variable input unknown 20 Average Product of variable input 30 4 130 19.5 4) The Deering company\'s production function is Q 20LK, where Q is the output rate, L is the number of units of labor used, and K is the number of units of capital. The price to Binder n Download hezer_c rn12 chOpptx heize.on12, cho.-Pptx ^ Ch+3+Outline+-+-.doc ^ ^ ^ cho pptx here to search

Solution

(3)

Marginal product (MP) = Change in Total output (TP) / Change in Variable Input (V)

Average product (AP) = TP / V, Therefore TP = AP x V

Therefore, completed table as follows.

V	TP	MP	AP
3	30 x 3 = 90	-	30
4	90 + 20 = 110	20	110 / 4 = 27.5
5	130	130 - 110 = 20	130 / 5 = 26
6	130 + 5 = 135	5	135 / 6 = 22.5
7	19.5 x 7 = 136.5	136.5 - 135 = 1.5	19.5