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Managing in the Global Environment Compulsory formative assignment Assignment code: 904MGEV.1 |
Answer 1 : (a) Total Product Curve

Labour (workers per week) | Output (toys per week) | 1 | 10 | 2 | 30 | 3 | 60 | 4 | 100 | 5 | 150 | 6 | 210 | 7 | 260 | 8 | 300 | 9 | 330 | 10 | 350 |

(X-axis = labour , Y-axis =Output)

(b) Average Product of Labour (APL)
APL = Output/Labour

Labour (workers per week) | Output (toys per week) | (Output / Labour)APL | 1 | 10 | 10 | 2 | 30 | 15 | 3 | 60 | 20 | 4 | 100 | 25 | 5 | 150 | 30 | 6 | 210 | 35 | 7 | 260 | 37.14 | 8 | 300 | 37.5 | 9 | 330 | 36.67 | 10 | 350 | 35 |

(X-axis = labour , Y-axis =APL)

Labour (workers per week) | Output (toys per week) | Marginal Product of labour MPL | 1 | 10 | 10 | 2 | 30 | 20 | 3 | 60 | 30 | 4 | 100 | 40 | 5 | 150 | 50 | 6 | 210 | 60 | 7 | 260 | 50 | 8 | 300 | 40 | 9 | 330 | 30 | 10 | 350 | 20 | (c) Marginal product of labour (MPL) :
MPL = Change in Output / Change In Labour

(X-axis = labour , Y-axis =MPL)

Labour (workers per week) | Output (toys per week) | Average Product of Labour APL | Marginal Product of Labour MPL | 1 | 10 | 10 | 10 | 2 | 30 | 15 | 20 | 3 | 60 | 20 | 30 | 4 | 100 | 25 | 40 | 5 | 150 | 30 | 50 | 6 | 210 | 35 | 60 | 7 | 260 | 37.14 | 50 | 8 | 300 | 37.5 | 40 | 9 | 330 | 36.67 | 30 | 10 | 350 | 35 | 20 | (d) Relationship: Marginal Product and Average Product

Figure [ 1 ](X-axis = labour , Y-axis =TP/APL/MPL)

Figure [ 2 ] (X-axis = labour , Y-axis =APL/MPL)
As seen from the above chart (Figure 2) the Average as well as marginal product curve first increase and then start decreasing at different output. Now as seen from Figure 2 as long as the Marginal Product

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