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1999 WAEC Economics Theory The table below relates to the application of fertilizer to a fixed area of land...

Economics
WAEC 1999

The table below relates to the application of fertilizer to a fixed area of land and the production of maize. Use the table to answer the questions that follow.

Tones of fertilizer Applied Total production in Bags Marginal product
0 1,000 -
1 1,100 100
2 1,250 150
3 1,500 250
4 - 400
5 - 250
6 - 125
7 2,350 -
8 2,380 -
9 2,330 -

(a) What will be the total output of maize when no fertilizer is applied to the land?
(b) Calculate the total product after the application of the following quantities of fertilizer:
(i) 4 tonnes;
(ii) 5 tonnes;
(iii) 6 tonnes.
(c) Calculate the marginal product after the application of the following quantities of fertilizer:
(i) 7 tonnes;
(ii) 8 tonnes;
(iii) 9 tonnes.
(d) (i) After what level of the application of fertilizer does diminishing marginal returns occur?
(ii) After what level of fertilizer application will the total output decrease? 

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Explanation

(a)Total output when no fertilizer is applied = 1,000 bags

(b) Total product after the application of the following quantities of fertilizers.
(i) 4 tonnes =1,500 + 400 = 1,900 bags
(ii) 5 tonnes = 1,900 + 250 = 2,150
(iii) 6 tonnes =2,150 + 125 = 2275

(c) The marginal product after the application of the following quantities of fertilizer.
(i) 7 tonnes = 2,330 - 2,275 = 75 bags
(ii) 8 tonnes = 2,380 - 2,350 = 30 bags
(iii) 9 tonnes = 2,330 - 2,380 = - 50 bags

(d) (i) Diminishing marginal returns occur after 4 tonnes
(ii) Total output decreases 8 tonnes 
 


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