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  • L 5 Exercise

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    Jnsvda
    2 views8 pages
    The document contains production data for a firm including output (APP), marginal physical product (MPP), total fixed cost (TFC), marginal revenue product (MRP), and marginal factor cost (MFC) for 9 periods. It shows declining MPP and MRP as output increases, indicating diminishing returns to scale. It also includes profit calculations from total revenue (TRP) minus TFC. Profits initially increase then decrease as MRP falls below MFC, indicating the firm's optimal output is between periods 5-6.

    Original Description:

    excercise

    Original Title

    l 5 Exercise

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    The document contains production data for a firm including output (APP), marginal physical product (MPP), total fixed cost (TFC), marginal revenue product (MRP), and marginal factor cost (MFC) for 9 periods. It shows declining MPP and MRP as output increases, indicating diminishing returns to scale. It also includes profit calculations from total revenue (TRP) minus TFC. Profits initially increase then decrease as MRP falls below MFC, indicating the firm's optimal output is between periods 5-6.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views8 pages

    L 5 Exercise

    Uploaded by

    Jnsvda
    The document contains production data for a firm including output (APP), marginal physical product (MPP), total fixed cost (TFC), marginal revenue product (MRP), and marginal factor cost (MFC) for 9 periods. It shows declining MPP and MRP as output increases, indicating diminishing returns to scale. It also includes profit calculations from total revenue (TRP) minus TFC. Profits initially increase then decrease as MRP falls below MFC, indicating the firm's optimal output is between periods 5-6.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    X

    Y
    0
    1
    2
    3
    4
    5
    6
    7
    8

    PX=5
    PY=1

    APP
    0
    10
    30
    60
    80
    90
    96
    98
    96

    MPP

    TRP

    TFC

    profit

    MRP

    MFC

    Y
    0
    1
    2
    3
    4
    5
    6
    7
    8

    APP
    0
    10
    30
    60
    80
    90
    96
    98
    96

    MPP

    TRP

    10
    15
    20
    20
    18
    16
    14
    12

    TFC
    0
    10
    30
    60
    80
    90
    96
    98
    96

    10
    20
    30
    20
    10
    6
    2
    -2

    profit

    MRP

    0
    5
    10
    15
    20
    25
    30
    35
    40

    0
    5
    20
    45
    60
    65
    66
    63
    56

    10
    20
    30
    20
    10
    6
    2
    -2

    PX=5
    PY=1
    X

    TRP
    0
    1
    2
    3
    4
    5
    6
    7
    8

    TFC
    0
    10
    30
    60
    80
    90
    96
    98
    96

    0
    5
    10
    15
    20
    25
    30
    35
    40

    Chart Title
    120
    100
    80
    60
    40
    20
    0

    TRP

    MRP
    0
    1
    2
    3
    4
    5
    6
    7

    TFC

    MFC
    10
    20
    30
    20
    10
    6
    2

    5
    5
    5
    5
    5
    5
    5

    Chart Title
    35
    30
    25
    20
    15
    10
    5
    0

    25
    20
    15

    -2

    10
    5
    0
    -5

    4
    MRP

    5
    MFC

    MFC
    5
    5
    5
    5
    5
    5
    5
    5

    Chart Title
    120
    100
    80
    60
    40
    20
    0

    -20

    Title

    TFC

    Title

    APP

    MPP

    5
    MFC

    rt Title

    APP

    MPP

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