JAMB Economics 1985 Question 48

Question 48

Theory of Production

The table below illustrates the law of diminishing returns on a farm.
Fixed Unit of land (hectares) | Variable Unit of Labour | Total Output (TO) | Marginal Product (MP)
5 | 1 | 10 | 10
5 | 2 | 25 | 15
5 | 3 | X | 21
5 | 4 | 60 | 14
5 | 5 | 73 | 13
5 | 6 | 82 | Y
Which pair of the following answers is appropriate for the missing information in the spaces marked X and Y?

  1. A.X = 20, Y = 6
  2. B.X = 38, Y = 9
  3. C.X = 46, Y = 9
  4. D.X = 46, Y = 14
  5. E.X = 10, Y = 10.
Show the answer and explanation

Answer: C (X = 46, Y = 9)

Explanation

X = 25 + 21 = 46 (also 60 − 14 = 46). Y = 82 − 73 = 9.