Name:________________________
Production Function Problem Set
The production function shows the relationship (a mathematical equation) between the amount of
inputs and the amount of output produced. Given the following table (for one month of
production), calculate and fill all the missing values based on the information below. In order to
get FULL credit, you must show ALL WORK and CALCULATIONS (if not points will be taken
off). Make sure to round your answers to 2 decimals.
Units of the Total Marginal Fixed Variable Total Average Average Average Marginal
Variable Product Product of Costs Costs Costs Fixed Costs Variable Total Costs
Factor (Y) Labor (FC) (VC) (TC) (AFC) Costs Costs (MC)
(L) (MPL) (AVC) (ATC)
0 0 200
1 20
250
2 70 50/50=
3 150 350
4 250 250
5 400 600
6 500 800 200/100=
7 580 900
8 630 500/50=
9 650 2000 600/20=
10 660 800/10=
1
Production Function Problem Set
The production function shows the relationship (a mathematical equation) between the amount of
inputs and the amount of output produced. Given the following table (for one month of
production), calculate and fill all the missing values based on the information below. In order to
get FULL credit, you must show ALL WORK and CALCULATIONS (if not points will be taken
off). Make sure to round your answers to 2 decimals.
Units of the Total Marginal Fixed Variable Total Average Average Average Marginal
Variable Product Product of Costs Costs Costs Fixed Costs Variable Total Costs
Factor (Y) Labor (FC) (VC) (TC) (AFC) Costs Costs (MC)
(L) (MPL) (AVC) (ATC)
0 0 200
1 20
250
2 70 50/50=
3 150 350
4 250 250
5 400 600
6 500 800 200/100=
7 580 900
8 630 500/50=
9 650 2000 600/20=
10 660 800/10=
1
