Table 6.1 Total Product, Marginal Product, and
Average Product of Labor with Fixed Capital
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6-10
Output, q, Units per day
C
110
90
56
(b)
B
0
A
4
Diminishing
Marginal Returns
sets in!
(a)
APL, MPL
Figure 6.1
Production
Relationships
with Variable
Labor
6!
11!
L, Workers per day
a!
20!
15
b!
Average product, APL
Marginal product, MPL
0
4
c!
6!
11!
L, Workers per day
Table 6.2 Output Produced with Two
Variable Inputs
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6-17
6
3
2
a
K, Units of capital per d ay
Figure 6.2 Family of Isoquants
1
0
b
e
c
f
q = 35
d
1
2
3
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6
q
= 14
L
,
Wo
r
kers
per d
ay
q = 24
6-18
Figure 6.3a,b Substitutability of Inputs
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6-20
Figure 6.3c Substitutability of Inputs
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Figure 6.4 How the Marginal Rate of Technical
Substitution Varies Along an Isoquant
K, Units of capital per d ay
M RTS in a P r inting and Pu blishing U.S. Fir m
16
a
DK = –6
10
DL = 1
–3
5
4
b
7
0
c
1
–2 1
–1
1
2
3
4
d
5
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1
e
q = 10
6
7
9
10
L
,
Wo
r
k
ers per d
ay
8
6-24
Application:Returns to Scale in U.S.
Manufacturing
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6-32
Application: Returns to Scale in
U.S. Manufacturing
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6-33
Application: Returns to Scale in U.S.
Manufacturing
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6-34
Figure 6.5 Varying Scale Economies
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