FACULTY DIPLOMA IN PLANTING

INDUSTRY MANAGEMENT
AT1102A

WRITTEN ASSIGNMENT - PROBLEM SHEET QUESTIONS

( AGR113 )

STUDENT NAME MATRIX NO

NATASYA BAYUMI BINTI MAT NASIR 2020458682

FATEHA BINTI SUHAIMI 2020488812

NOOR ADRIANA SYAZWINA BINTI NORDIN 2020843316

Prepared for :
MADAM NOORSHILAWATI BINTI ABDUL AZIZ

Date of submission:
30th June 2021
 WRITTEN ASSIGNMENT - PROBLEM SHEET QUESTIONS (AGR113)
SET F

Question 1

You are given the following data on the production of bread using the combinations of labor as below:

Labor (Unit): 0 1 2 3 4 5 6 7 8
Total Physical 0 10 25 43 58 68 73 73 66
Product
Average Physical - 10 12.5 14.3 14.5 13.6 12.2 10.4 8.3
Product
Marginal Physical - 10 15 18 15 10 5 0 -7
Product

a) Fill in the data on spaces provided for Average Physical Product (APP) and Marginal Physical
Product (MPP).
b) Draw the TPP, APP and MPP curves on the graph papers.
c) State the stages of production using the above curves.
Question 2

Costs of a firm (RM) are shows in the table below.

Output TFC TVC TC AFC AVC ATC MC

0 100 0 100 - - - -
1 100 46 146 100 46 146 46
2 100 71 171 50 35.5 85.5 25
3 100 89 189 33.3 29.67 63 18
4 100 99 199 25 24.75 49.75 10
5 100 116 216 20 23.20 43.2 17
6 100 137 237 16.6 22.83 39.5 21
7 100 165 265 14.29 23.57 37.86 28
8 100 196 296 12.50 24.5 37 31
9 100 233 333 11.11 25.8 37 37
10 100 292 392 10 29.2 39.2 59
11 100 378 478 9.10 34.36 43.45 86
12 100 478 573 8.33 39.4 47.75 95

a) Complete the table above.

b) Sketch the AVC, AC and MC curves in the same graph.
c) Does the above firm exist in the long run or short run? Why?
d) Does fixed cost exist in the long run?

a. Give
b.

c. Short run because there is fixed cost.

d. No, cost is fixed in the long run. A firm can build new facilities and purchase new machinery, or
it can close existing facilities. In planning for the long run, a firm can compare alternative
production technologies or processes.
Question 3

Answer the following questions based on the graph below.

Price (RM)
MC

AC

MR = AR

Quantity

a) What type of profit does the firms makes based on the above graph? Why?
b) Copy the above graph and shade the area of profit or loss.
c) What type of profit does a perfectly competitive firm make in the long run? Why?

a. Supernormal profit because even the loss profit is more than profit but it still afford to cover the
cost.
b.

c. Normal profit because long run equilibrium have only one market structure. It also easy to enter
and exit the market.