At 47 units of labor, a firm finds that average product of labor equals 39.6 and marginal product...
Question:
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
Become a Study.com member to unlock this answer! Create your account
View this answer
- 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...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Total Product, Average Product & Marginal Product in Economics
from
Chapter 4 / Lesson 2
71K
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.
Related to this Question
- At 76 units of labor, a firm finds that average product of labor equals 39.6 and marginal product of labor equals 42.9. We can conclude that the average product curve is 76 units of labor is: a) upward-sloping. b) downward-sloping. c) vertical. d) horizon
- When the marginal product of labor exceeds the average product of labor, A. the average product of labor is increasing. B. the average product of labor is decreasing. C. the firm is experiencing decreasing returns to scale. D. the total product curve is n
- In the graph below, it is shown the firm's average product of labor and the marginal product of labor curves. The price of labor is $60 per unit. Given this, diminishing returns set in with the: a. 3rd unit of labor b. 6th unit of labor c. 10th unit of
- In the graph below, it is shown the firm's average product of labor and the marginal product of labor curves. The price of labor is $60 per unit. When the firm uses 4 units of labor, what is the average variable cost? a. $240 b. $124 c. $10 d. $24 e.
- The average product of labor is A. the inverse of the average product of capital. B. total product divided by the total quantity of labor employed. C. the slope of the curve showing the total product of labor. D. the slope of the curve showing the margina
- The average product of labor exceeds the marginal product of labor A. when the average product of labor is at its maximum. B. when the marginal product of labor is at its maximum. C. when the average product of labor is rising. D. when the average product
- When the average product of labor is at its maximum: a. output is maximized. b. average product of labor is less than marginal product of labor. c. average product of labor is equal to marginal product of labor. d. average product of labor is larger than
- If the average product of labor is increasing, which of the following must be true? 1) The marginal product of labor is falling. 2) The marginal product of labor is increasing. 3) The marginal product of labor is greater than the average product of labor
- Once you have the total product curve plotted with the below data, how do you calculate the average product of labor at different units of labor? and the marginal products of labor? 1 unit of labor = 2 outputs per week 2 units of labor = 6 output per we
- When labor used is 12 units and output is 36, then a) the marginal product of labor is 3. b) the total product of labor is 1/3. c) the average product of labor is 3. d) None of the above.
- If the Marginal Product of Labor is greater than the Average Product of Labor, is the Average Product of Labor rising, falling, or at its minimum?
- If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will A. not change its average product of labor. B. decrease its average product of labor. C. increase its mar
- Suppose a firm has a three-stage production function. Suppose the firm is using 20 units of labor. At this level of input, the marginal product of labor is 50 and the average product is 30. (i) What
- From a firms short run production function, the marginal product of labor and the average product of labor may be determined. The marginal product of labor is the: A. total output divided by the numb
- Total product divided by the total quantity of labor employed equals the A. average product of labor. B. average total cost. C. marginal product of labor. D. average variable cost.
- A firm is using 10 workers, and their average product is 200 units. Suppose the marginal product of labor is 250 units. In answering the questions below, explain your answers briefly. How much output
- A firm is using a single variable input, labor, with a given amount of a fixed input, capital. If the level of capital is decreased: a. the total product curve shifts downward. b. the average product curve of labor shifts downward. c. the marginal product
- The average product of labor is given by the equation APL = 600 + 200L - L2. a. What is the equation for the total product of labor (TPL)? b. What is the equation for the marginal product of labor (MPL)? c. At what level of labor usage is APL = MPL?
- Diminishing marginal returns to short-run production begin when: A. the average product of labor begins to fall. B. the total product of labor begins to fall. C. marginal product of labor becomes negative. D. average variable cost begins to rise. E. margi
- Why is Marginal Product of labor plotted at mid points between quantities of labor used while average product of labor is plotted at exact quantities of labor used?
- Suppose that a firm's short-run production function has been estimated as Q = 2L + 0.4L2 - 0.002L3, where Q is units of output and L is labor hours. a. What is the firm's marginal product of labor equation? b. What is the firm's average product of labor e
- Does the slope of the production function measure the average product of labour or the marginal product of a worker?
- If a firm hires labor in a competitive market, and the wage paid to labor is designated by ''W'', then the average variable cost of the firm is equivalent to: A) W times the marginal product of labor B) W divided by the average product of labor C) W d
- Say the average product of 6 workers is 15. If the marginal product of the 7th worker is 18, then a) marginal product is falling. b) marginal product is constant. c) average product is rising. d) average product is falling.
- The marginal product of labor is known to be greater than the average product of labor at a given level of employment. The Average Product at this point would be.. a) decreasing b) increasing c) constant
- Assume that a firm's production function Q = K1/2L1/2. Assume that the firm currently employs 200 units of capital and 100 units of labor. Determine the Average Product of Capital, Average Product of Labor, Marginal Product of Capital, and Marginal Produ
- If each extra worker produces an extra unit of output, how do the total product of labor, the average product of labor, and the marginal product of labor vary with the number of workers?
- Suppose the marginal product of labor is currently equal to its average product. If you were one of 10 new workers the firm was about to hire, would you prefer to be paid the value of your average pro
- 1. Given the chart above, what is the average product of labor when 15 units of labor are employed? 2. Given the chart above, what is the marginal product of labor of the 15th unit of labor?
- A firm has the following production function: Q=2K L. Capital is fixed at 16 units. (a) calculate the average product of labor when 16 units of labor are utilized (b) calculate the marginal product
- Suppose that a firm's production function is Q = F(L) = L^3 - 200 L^2 + 10,000 L. Its marginal product of labour is MP_L = 3 L^2 - 400 L + 10,000. At what amount of labor input are the firm's average and the marginal product of labor equal?
- A rational entrepreneur would never employ an additional unit of labor input as long as: a. marginal product is less than zero b. average product is rising c. marginal product is less than average
- A rational entrepreneur would always employ an additional unit of labor Input as long as: a. marginal product is less than zero b. average product is rising c. marginal product is less than average
- The average product of labor is diminishing when: (Select all correct answers) - The marginal product of labor is diminishing. - The production function is of a concave shape. - The marginal produc
- Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. What is average variable cost?
- 1. For a given output level, a firm's short-run average product of labor is 4 while its marginal product of labor is 5. Assume that the wage rate is $20. The short-run average variable cost is a. und
- Suppose that a firm is currently employing 10 workers, the only variable input, at a wage of $100. The average physical product of labor is 25, the last worker added 10 units to the total output, and the total fixed cost is $5,000. What is the marginal co
- For a given output level, a firm's short run average product of labor is 4 while its marginal product of labor is 5. Assume that the wage rate is $20. What is the short run average variable cost?
- Consider a firm whose production function is f(L, K) = AL^aK^b. For which values of A, L,K, a, and b is the Average Product of Labor for this company equal to the Marginal Product of Labor? a) a = 1 and any values of b, L, and K. b)a+b=1, b greater than
- Quantity of Workers Total Product Average Product Marginal Product 0 0 1 3 2 7 3 12 4 16 5 18 6 18 In the above table, the average product for 5 workers and the marginal product of the 5
- Show and discuss the relationship between: total product, average product, and marginal product using a two panel diagram. Why do the marginal product of labor and the average product of labor have t
- If the marginal product of labor has been rising with each labor unit hired over the past 30 labor units, then the marginal cost of production has as output rose with these last 30 hired labor units.
- At L=100, K=149, the marginal product of labor is 2, and the marginal product of capital is 2. What is the marginal rate of technical substitution (labor measured on the horizontal axis)? The marginal
- When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as: a. Wage divided by number of workers, b. Marginal product of labor multiplied by wage, c. Wage divided by marginal product of labor, d. Marginal product of
- The marginal product of labor is a. the average number of units produced by each worker. b. the additional output produced when another worker is hired. c. a worker's weekly production. d. the total number of units each worker is capable of producing.
- The marginal product of labor is the A. output level above which the slope of the total product curve falls. B. output level above which the rate of total product per unit of labor falls. C. maximum output attainable with fixed factors when labor is the o
- Suppose capital is fixed at 4 units in the production function Q = KL. Draw the total, marginal, and average product curves for the labor input.
- Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $250. The average physical product of labor is 25, the last worker added 10 units to total output, and the total cost is $5,000.What is the average variable
- Consider labor that is hired for $18 per hour. If the last hour of labor hired produces 8 units of output which sells for $10 per unit, that labor hour's marginal revenue product is: A) $1.20 B) $4.44 C) $64 D) $80 E) $144
- 1. The change in output caused by a one-unit change in labor is referred to as the: a) compounded physical product of labor. b) average product of labor. c) marginal product of labor. d) total pro
- The change in output caused by a one-unit change in labor is referred to as the: a. compounded physical product of labor b. average product of labor c. marginal product of labor d. total product of labor
- Suppose that the production function is Q = L^{2 / 3} K^{1 / 2}. a. What is the average product of labour, holding capital fixed? b. What is the marginal product of labour? c. Determine whether the production function exhibits diminishing marginal product
- Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $250. The average physical product of labor is 25, the last worker added 10 units to total output, and
- Suppose that a firm is currently employing 10 workers, the only variable input, at a wage of $100. The average physical product of labor is 25, the last worker added 10 units to the total output, and the total fixed cost is $5,000. What is the average tot
- Suppose that a firm is currently employing 10 workers, the only variable input, at a wage of $100. The average physical product of labor is 25, the last worker added 10 units to the total output, and the total fixed cost is $5,000. What is the average var
- Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $250. The average physical product of labor is 25, the last worker added 10 units to total output, and the total cost is $5,000.What is the average total cos
- The law of diminishing returns implies that, with the stock of capital held fixed, as the use of labor rises. a. total product will fall eventually b. average fixed costs will fall with output c. the marginal product of labor will fall eventually d. the
- A firm produces output with capital and labor. Suppose currently the marginal product of labor is 21 and the marginal product of capital is 6. Each unit of labor costs $12 and each unit of capital co
- The marginal product of labor can be defined as the change in a) output divided by the change in labor. b) labor divided by the change in total cost. c) labor divided by the change in output. d) profit divided by the change in labor.
- Which assumption about the firm's production technology implies that the revenue curve, when plotted as a function of labor, is upward-sloping? a. More inputs lead to more outputs. b. Marginal product of labor decreasing in labor. c. Marginal product of l
- A firm is operating in the range of production where the law of diminishing returns has set in. The firm's total product when 10 units of labor are employed is 50. The marginal product of 11th unit of labor is 4. What is the firm's total product when 11 u
- A firm whose production function displays decreasing returns to scale will have an average cost curve that is: a. a curve with a positive slope b. a curve with a zero slope c. a curve with a negative slope d. all of the above.
- What is the average product of labor? a. The average product of labor is total wages divided by the number of workers. b. The average product of labor is the number of workers times their average hourly wage. c. The average product of labor is the total
- What is the average product of labor? a) The average product of labor is total wages divided by the number of workers. b) The average product of labor is the number of workers times their average hourly wage. c) The average product of labor is the total p
- Consider the production function f(L, K) = L + K. Suppose K is fixed at 2. Find algebraic expressions for the total product of labor (TPL), the average product of labor (APL), and the marginal product
- Consider a call center with production function f(L,K)=30L+300K, where L is units of labor and K is units of capital. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). Suppose that K=2. For
- Suppose your business is currently 750 workers, the only variable input, at a wage rate of $48. The average product of labor is 96, the last worker added 6 units to total output, and total fixed cost
- When a perfectly competitive firm employs one worker, it produces 20 units of output. When the same firm employs two workers, it produces 39 units of output. The firm sells its product for $10 per unit. What is the marginal revenue product connected with
- Consider the following table. A. Draw the total product curve. B. Find the marginal product (MP) and average product (AP) for each quantity of labor. Draw the graphs for MP and AP curves on the same plane. C. What can be said about the relationship betwee
- Suppose that a firm is currently employing 10 workers, the only variable input, at a wage of $100. The average physical product of labor is 25, the last worker added 10 units to the total output, and the total fixed cost is $5,000. How much output is bein
- The law of diminishing marginal productivity states: a. that in the presence of a fixed factor, at some point average product of labor starts to fall as more and more variable inputs are added. b. that average total costs of production initially fall and
- Consider a firm with short-run production function Q=K+L. Right now, the firm has 10 units of K, w = 3, and r = 10. Graph the short-run marginal and average product curves Graph the short-run total co
- If the price of capital is higher than the price of labor, a firm should use: A) Capital and labor, making sure the marginal product of capital is larger than the marginal product of labor. B) Capital and labor, making sure the ratio of the average prod
- If a firm hires another paid worker, but his marginal product of labor turns out to be 0 (zero), then the firm's new average total cost: A. is lower than before. B. cannot be assessed and compared t
- Given the following table. Calculate the average product of labor and draw the average product curve.
- It is profitable to hire units of labor as long as the value of marginal product: a. is less than wage. b. exceeds average product. c. equals price. d. exceeds wage.
- Average fixed cost production function average product of labor average total cost short run average variable cost short-run marginal cost fixed input total cost total fixed cost law of dimi
- Suppose the production function is q=L^{0.75}K^{0.25}. In the short run, K is fixed at K=10. Derive an equation for the (short run) average product of labor and for the short run marginal product of labor. In the long run, capital and labor are both varia
- Suppose a firm faces the production function q = L^{0.75}K^{0.25}. A. What is the average product of labor, holding capital fixed? What is the marginal product of labor? B. What are the APL, and MPL when K is fixed at 16?
- You estimate a short-run production function to be Q = 16L^{0.8} which gives a Marginal Product of Labor function MPL = 0.8*16L^{-0.2} = 12.8/L^{0.2}. If the product made by the labor sells at a price of P=$8 per unit, then the Marginal Revenue Product of
- Consider the production function Q = 6L^2 - L^3. a. Find the average product. Find the number of labor (L) that the firm should hire to maximize the average product. b. Find the marginal product. Find the number of labor (L) that the firm should hire to
- Suppose that the marginal product of the last worked employer by a firm is 40 units of output per day and the daily wage that the firm must pay is $20, while the marginal product of the last machine rented by the firm is 120 units of output per day and th
- The marginal product of labor is the change in total product from a one-unit increase in A. the wage rate. B. both the quantity of labor and the quantity of capital employed. C. the quantity of labor employed, holding the quantity of capital constant. D.
- Suppose that capital costs $10 per unit and labour costs $4 per unit. If the marginal product of capital is 50 and the marginal product of labour is 50, then in the long run the firm should in order to minimize its costs of producing its output. A) emplo
- A competitive firm pays their labor a wage of $10 an hour. Their product sales for $7. In order to achieve a marginal revenue product of $63, what must the marginal product of labor be? a) 5 b) 6.3 c) 9 d) 21 e) 70
- A firm produces 200 units of a good when it employs 7 workers. The marginal product of the eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to: a. 246 units b. 208 units c. 322 units d. 228 units
- In the short run, only labor is variable output. The marginal productivity of labor is _________. a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of t
- A firm is currently producing 200 units of output using 60 hours of labor and 80 hours of capital. The marginal product of labor is 12 units of output per hour, and the marginal product of capital is 15 units of output per hour. If the wage rate is $6 per
- A firm whose production function displays decreasing returns to scale will have an average cost curve that is _____. a. a curve with a positive slope. b. a curve with a zero slope. c. a cure with a negative slope. d. all of the above.
- A firm used Labor (L) and Machines (M) according to the production function The marginal products are The cost of Labor is $40 per unit and the cost of using Machine is $10. a. Suppose the Firm wants
- A firm's production function is given by q = f(L, K) = LK + 2L^2 K - L^3. Suppose the firm is operating in the short-run with K = 9. A) What is the marginal product of labor function? B) For what values of labor does increasing marginal product exist? C)
- Assume there is an improvement in technology that increases the marginal product of each unit of labor. This would have the effect of: A) reducing the average total cost, average variable cost, and marginal cost of production. B) reducing the average tota
- A firm estimates its long-run production function to be Q = -0.0050K^3L^3 + 15K^2L^2. Suppose the firm employs 10 units of capital. At units of labor, marginal product of labor begins to diminish. a. 66.67 b. 100 c. 150 d. 200 e. 1000
- If output is only a function of labor, then: a. the slope of the production function measures the average product of labor. b. a firm cannot be profitable in the long run. c. the slope of a ray from the origin to a point on the production function measur
- Scenario 13-4 Suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level. 23. Refer to Scenario 13-4. Average
- A factory's worker productivity is normally distributed. One worker produces an average of 75 units per day with a standard deviation of 20. Another worker produces at an average rate of 65 per day with a standard deviation of 21. What is the probability
- When the total product curve is drawn in a figure that measures employment along the horizontal axis, it is a graph that shows the A. maximum output attainable for each quantity of labor employed. B. minimum cost of producing a given amount of output usin
- Consider a newspaper with production function f(L,K)= 4min(L,K), where L is the units of labor and K the units of capital they use. Denote by APL(L,K)=f(L,K)/L the so-called average product of labor (here f is the production function of the firm). Is the
- What is total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work called?
- The average product of labor is A) positively related to economic growth. B) the output produced per worker. C) the total product of labor divided by the number of workers. D) a direct measure of
Explore our homework questions and answers library
Browse
by subject