Suppose the following production function data. Complete [4 marks] and answer the questions below. Labour Total Product 1 10 2 22 3 36 4 48 5 55 6 60 7 60 8 56 a) Where does the law of diminishing returns set in? Explain your answer using graph. [6] b) Where is TP = 0 and what happens to MP curve at that point? [4] c) Explain, using a graph, each stage/phase of the production function in terms of returns to labour. d) Based on your analysis in b) explain the relationship between TP, MPP and the APP e) calculate the elasticities of production

/in /by

Suppose the following production function data. Complete [4 marks]
and answer the questions below.

Labour Total Product

1 10

2 22

3 36

4 48

5 55

6 60

7 60

8 56

a) Where does the law of diminishing returns set in? Explain your
answer using graph. [6]

b) Where is TP = 0 and what happens to MP curve at that point? [4]

c) Explain, using a graph, each stage/phase of the production function
in terms of returns to labour.
d) Based on your analysis in b) explain the relationship between TP, MPP and the APP
e) calculate the elasticities of production

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