JAYSON B. DE ASIS
LAW OF DIMINISHING MARGINAL RETURN
Complete the matrix below by computing the marginal and average product. Then make a line
showing the stages 1, 2, 3 of the TP( total product), MP (Marginal Product) and AP (Average
Product), then interpret the data on the matrix applying the law of diminishing marginal returns.
Follow the given data
Vertical axis- 0-70
Horizontal axis- 1-10
CAPITAL
(Fixed
Input)
10
10
10
10
10
10
10
10
10
10
10
LABOUR
(Variable
Input)
0
1
2
3
4
5
6
7
8
9
10
TOTAL
PRODUCT
MARGINAL AVERAGE
PRODUCT
PRODUCT
0
7
16
26
38
52
68
70
70
66
50
0
7
9
10
12
14
16
2
0
-4
-2
0
7
8
8.7
9.5
10.4
11.3
10
8.75
7.3
5