1) Rubber Dinghies total product schedule is:
| Labour (workers per week) | Output (Dinghies per week) |
| 1 | 1 |
| 2 | 3 |
| 3 | 6 |
| 4 | 10 |
| 5 | 15 |
| 6 | 21 |
| 7 | 26 |
| 8 | 30 |
| 9 | 33 |
| 10 | 35 |
- Draw the total product curve
- Calculate the average product of labour and the average product curve.
- Calculate the marginal product curve
- What is the relationship between average product and marginal product when rubber Dinghies products (i) fewer than 30 Dinghies a week and (ii) more than 30 Dinghies a week?
3) In problem 1, the price of labour is $400 a week and total fixed cost is $1000 a week.
- Calculate total cost, total variable cost, and total fixed cost for each output and draw the short run total cost curves.
- Calculate average total cost, and marginal cost at each output and draw the short-run average and marginal cost curves.
5) in problem 3, suppose that Rubber Dinghies total fixed cost increases to $1100 a week. Explain what changes occur in the short-run average and marginal cost curves.
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