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.

/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.

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