Determining average and marginal product

Reference no: EM1371690

According to data obtained by the U.S Department of Agriculture, the relationship between a cow's total output of milk and the amount of grain it is fed is as follow:

Amount of Grain(Pounds) Amount of Milk(Pounds)

1,200 5,917

1,800 7,250

2,400 8,379

3,000 9,371

(This relationship assumes that forage input is fixed at 6,500 pounds of hay.)

a) Compute the average product of grain when each amount is used.

b) Determine the marginal product of grain when between 1,200 and 1,800 pounds are fed, when between 1,800 and 2,400 pounds are fed, and when between 2,400 and 3,000 pounds are fed.

c) Does this production function exhibit diminishing marginal returns?

Reference no: EM1371690

Questions Cloud

How global competition impacts ford : Determine how global competition impacts FORD. Should the organization/industry continue, expand, or reduce current operations in order to maximize profits? Explain your reasoning.

Agricultural demand and innnovation : Because agricultural demand is inelastic, a technological advance which lowers production costs will reduce total revenue. Thus, farmers have no incentive to introduce such a technique.

Cost of capital analysis : Describe the importance of cost of capital with respect to the actual financial problem of most manufacturing companies.

Production possibilities for the firm : The following is the production possibilities for a firm. At 0 labor units (strangely enough), there are 0 units produced. At 1 labor unit, there are 10,000 units produced, at 2 labor units, there are 25,000 units produced, at 3 there are 45,000, ..

Determining average and marginal product : Compute the average product of grain when each amount is used. Determine the marginal product of grain when between 1,200 and 1,800 pounds are fed, when between 1,800 and 2,400 pounds are fed, and when between 2,400 and 3,000 pounds are fed.

Describe the relative effectiveness of engineering versus : Describe the relative effectiveness of engineering versus management controls to improve job safety and health?

Three stages of production : Rcognize the three phases of production and describe why the firm short run production has only one rational stage of production.

Explain a contract may condition the performance of a party : Explain A contract may condition the performance of a party upon the approval of a third party. Is this true?

Describe workers productivity : In what particular ways (if any) does a college education increase a worker's productivity? Take some special care with this problem.

User Account

All Pages