Author Question: Refer to the production function. The average product at 5 units equals ________ units. Fill in ... (Read 70 times)

anjilletteb · **on:** Jul 1, 2018

Refer to the production function. The average product at 5 units equals ________ units.

Fill in the blank(s) with correct word

Question 2

Refer to the production function. The marginal product at 5 units equals ________ units.

Fill in the blank(s) with correct word

kiamars2010 · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

To get the average product, divide the total product equation by X and substitute 5 for X

Thus the average product equation becomes:
If Y = 10X + 20 X2 - X3
APy = 10 + 20X - X2
At 5, APy = 10+ 20(5 ) - (5 )2
= 10 + 100 - 25
= 85 units

Answer to Question 2

To obtain the marginal product at 5 units, take the first derivative and substitute 5 for X

Y = 10X + 20X2 - X3
dy/dx = 10 + 40(X) - 3X2
= 10 + 40(5 ) - 3(5 )2
= 10 + 200 - 75
= 135 units