Microeconomics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson

Exercise 7

Fill in the blanks in the accompanying table shown at the bottom of page and answer the following questions:
a. What happens to total product when marginal product is negative
b. What happens to average product when marginal product is greater than average product
c. What happens to average product when marginal product is less than average product
d. At what point does marginal product begin to decrease
e. At what point does marginal cost begin to increase
f. Summarize the relationship between marginal product and marginal cost.
g. What happens to marginal costs when total product begins to fall
h. What is happening to average variable costs when they equal marginal costs
i. Marginal costs equal average variable costs between what output levels
j. What is happening to average total costs when they equal marginal costs
k. Marginal costs equal average total costs between what output levels
*Asterisk denotes questions for which answers are given in Appendix B.