Answer to Question #8859 in Microeconomics for Shaminee

Question

2)Use the following production function to answer the question below wherelabour(L) is measured in workers per day and out put (Q) is number of units per day.
L O MPP TVC TC MC ATC
0 0 RM0 RM0 RM120 RM0
1 60 60 60 180 3
2 150 75 120 240 1.6
3 210 70 180 300 1.43
4 240 60 240 360 1.5
5 260 52 300 420 1.62
b) what level of labour is associated with the point of diminishing returns?explain your answer.
d) draw the marginal cost and average total cost on the same graph.