AP Microeconomics 3.1: The Production Function

Use production data to connect inputs and output, calculate productivity measures, and identify diminishing marginal returns and returns to scale.

Covered syllabus points

PRD-1.A—a. Define (using graphs where appropriate) key terms and concepts relating to production and cost. b. Explain (using graphs where…

[Maximum number: 1]

The table provided shows the short-run production function for Lowen Feline, a profit-maximizing firm that produces cat food.

Table for Question 3.1 The Production Function question 1 — AP Microeconomics

Lowen Feline sells as many bags of cat food as it wants at a market price of $ 10 per bag and hires as many workers as it wants at a market wage of $ 18.

With the hiring of which worker do diminishing marginal returns begin? Explain using numbers.

State that diminishing marginal returns to labor begin with the hiring of the $3^{\text {rd }}$ worker
and explain that the marginal product of the $1^{\text {st }}$ worker is 5 bags, the marginal product of
the $2^{\text {nd }}$ worker increases to 7 bags, and the marginal product of the $3^{\text {rd }}$ worker decreases
to 6 bags.

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Covered syllabus points

3.1 The Production Function question 1