Question 48
Theory of ProductionThe 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?
- A.X = 20, Y = 6
- B.X = 38, Y = 9
- C.X = 46, Y = 9
- D.X = 46, Y = 14
- 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.