AP Microeconomics 3.1 The Production Function Questions

Practise interpreting short-run production data, calculating productivity measures, and explaining how fixed inputs lead to diminishing marginal returns.

Exam points

derive marginal and average product from a production schedule or total-product graph
locate diminishing marginal returns by comparing the output added by successive workers
interpret how marginal product and average product change as total product rises or falls
connect diminishing marginal product under a fixed input to an increase in marginal cost

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 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

Question 1