The law of diminishing returns

We are looking at a short run production system

The student needs to calculate all the values and provide the graphs: a) Production total b) Marginal production c) Production / crane
d) Total cost e) Ave. cost f)Marginal cost
The horizontal axis is number of crane for all
The optimum number of OH Cranes need to be determined
Basic information
You are on a building site for a new Nuclear Power station
The site is about 500m x 500m
Due to pipes cables, trenches and general activities all material must be placed in position by either hand of by means of the OH Crane
Your fixed resource is Labour (as per agreement with government)
Your variable resource is the number of OH building cranes you can utilize to optimize the operation
Your output is cubic meter of Reinforced Concrete per month
Required Complete the table with headings as below. This is for your own set of information as supplied on information sheet
You have the following information available: a) Production /month b) number of cranes c) Fixed monthly cost d) Cost / crane (Variable)

20000 4200
Cube m of RC Number of Inc Production Total Fixed Total variable Total Average Average Average Marginal
Conc. / Month Cranes Marginal per Crane cost cost cost Fixed cost variable cost cost cost
25 0 20000 0 20000 800,0 0,0 800,0 168,0
50 1 25 50,0 20000 4200 24200 400,0 84,0 484,0 56,0
125 2 75 62,5 20000 8400 28400 160,0 67,2 227,2 42,0
225 3 100 75,0 20000 12600 32600 88,9 56,0 144,9 33,6
350 4 125 87,5 20000 16800 36800 57,1 48,0 105,1 28,0
500 5 150 100,0 20000 21000 41000 40,0 42,0 82,0 21,0
700 6 200 116,7 20000 25200 45200 28,6 36,0 64,6 16,8
950 7 250 135,7 20000 29400 49400 21,1 30,9 52,0 14,0
1250 8 300 156,3 20000 33600 53600 16,0 26,9 42,9 12,0
1600 9 350 177,8 20000 37800 57800 12,5 23,6 36,1 12,9
1925 10 325 192,5 20000 42000 62000 10,4 21,8 32,2 14,0
2225 11 300 202,3 20000 46200 66200 9,0 20,8 29,8 15,3
2500 12 275 208,3 20000 50400 70400 8,0 20,2 28,2 21,0
2700 13 200 207,7 20000 54600 74600 7,4 20,2 27,6 28,0
2850 14 150 203,6 20000 58800 78800 7,0 20,6 27,6 42,0
2950 15 100 196,7 20000 63000 83000 6,8 21,4 28,1 56,0
3025 16 75 189,1 20000 67200 87200 6,6 22,2 28,8 28,8