The table below relates to the application of fertilizer to a fixed area of land and the production of maize. Use the table to answer the questions that follow.
Tones of fertilizer Applied
Total production in Bags
Marginal product
0
1,000
-
1
1,100
100
2
1,250
150
3
1,500
250
4
-
400
5
-
250
6
-
125
7
2,350
-
8
2,380
-
9
2,330
-
(a) What will be the total output of maize when no fertilizer is applied to the land? (b) Calculate the total product after the application of the following quantities of fertilizer: (i) 4 tonnes; (ii) 5 tonnes; (iii) 6 tonnes. (c) Calculate the marginal product after the application of the following quantities of fertilizer: (i) 7 tonnes; (ii) 8 tonnes; (iii) 9 tonnes. (d) (i) After what level of the application of fertilizer does diminishing marginal returns occur? (ii) After what level of fertilizer application will the total output decrease?
Explanation
(a)Total output when no fertilizer is applied = 1,000 bags (b) Total product after the application of the following quantities of fertilizers. (i) 4 tonnes =1,500 + 400 = 1,900 bags (ii) 5 tonnes = 1,900 + 250 = 2,150 (iii) 6 tonnes =2,150 + 125 = 2275 (c) The marginal product after the application of the following quantities of fertilizer. (i) 7 tonnes = 2,330 - 2,275 = 75 bags (ii) 8 tonnes = 2,380 - 2,350 = 30 bags (iii) 9 tonnes = 2,330 - 2,380 = - 50 bags (d) (i) Diminishing marginal returns occur after 4 tonnes (ii) Total output decreases 8 tonnes
