At 47 units of labor, a firm finds that average product of labor equals 39.6 and marginal product...


At {eq}47 {/eq} units of labor, a firm finds that average product of labor equals {eq}39.6 {/eq} and marginal product of labor equals {eq}32.9 {/eq}. We can conclude that the average product curve at {eq}47 {/eq} units of labor is:

a) upward-sloping.

b) horizontal.

c) vertical.

d) downward-sloping.

Marginal Product and Average Product:

The average product of an input refers to the total input per unit of the input employed. We determine the average product of an input by dividing the total output by the quantity of the input employed. The marginal product of an input is the additional output that an additional unit of an input is capable of producing.

Answer and Explanation: 1

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  • The correct answer is: d) downward-sloping.

The average product of labor (APL) and the marginal product of labor (MPL) are related in such a manner...

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Total Product, Average Product & Marginal Product in Economics


Chapter 4 / Lesson 2

In Economics, there are three factors involved in the theory of production: total product, average product, and marginal product. Explore this theory and learn how to maximize the efficiency of these production tools.

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