(a)(i) Total product = Average product x Units of labour
36 = P x 3, P3 = 36 P = 36
P= \(\frac{36}{3}\) = 12
(ii) Q =
Total product = \(\frac{60}{6} = 10
Labour
(iii) R = \(\frac{48-36}{4-3}\)
\(\frac{12}{12}\) = 1
(iv) S = \(\frac{60 - 60}{6 - 5} = \frac{0}{1}\) = 0
(v) T = \(\frac{56 - 60}{8 - 7}\) = \frac{-4}{1}\) = -4
| Variable units of labour | Fixed Assets (Hecteres of Land) | Total Product (kg) | Average Product (kg) | Marginal product (kg) |
| 1 | 3 | 8 | 8 | - |
| 2 | 3 | 18 | 9 | 10 |
| 3 | 3 | 36 | P | 18 |
| 4 | 3 | 48 | 12 | 12 |
| 5 | 3 | 55 | 11 | 7 |
| 6 | 3 | 60 | 10 | 5 |
| 7 | 3 | 60 | 8.6 | 0 |
| 8 | 3 | 56 | 7 | -4 |
(c) Both TP and MP rise initially. The TP curve is at maxi-mum when MP is zero.
TP declines after MP = 0 and MP assumes negative values
At N6 = 400 - 150 = 250 units
(c) Excess supply at prices N8, N9 and N10 .
Excess supplied at N8 = 400 - 250 = 150 units
at N9 = 500 - 150 = 350units
at N10 = 600 - 50 =550 units
(d) At price N7, Quantity is 300 units
