Manageriql Economices

[][Name][Managerial Economics][University][Instructor Name][July 31 , 2010]Managerial EconomicsAmount of labour ( units )Amount of capital (No . of machines )Output of split (Q , hundreds of parts )Average harvest-tide (Q /L ) peripheral intersection ?Q ?L0 5 0 -1 5 49 49 492 5 132 66 833 5 243 81 1114 5 376 94 1335 5 525 105 1496 5 684 114 1596 .666 5 792 .59 120 .09 1637 5 847 121 1638 5 1008 126 1619 5 1161 129 15310 5 1300 130 13911 5 1419 129 11912 5 1512 126 9313 5 1573 121 6114 5 1596 114 2315 5 1575 105 -21Curves showing Marginal carrefour and Average ProductThree Stages of ProductionDuring mathematical production process , when comparing be , in that respect ar three details which basin be identified and essential be explained .

These three stages are whenIncreasing Returns : If marginal product is greater than fair product this is the particularise where marginal product pulls the average product upwards , resulting in increasing returns . This condition is macroscopic in the graph up to the point where labor is little than 10Diminshing Returns This is point where marginal prodct starts fall . It is evident ion the graph that fall returns start from the point where 10 units of labor are requiredNegative Returns : This stage of production begins when marginal product is less than average product . Beyond 17 units of labor...If you hope to get a encompassing essay, order it on our website: OrderCustomPaper.com

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