Question 12
MediumOriginal questionCapital is fixed and labour is varied. The table shows total product.
| Labour (units) | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
|---|---|---|---|---|---|---|---|---|---|
| Total product | 10 | 24 | 39 | 52 | 60 | 66 | 70 | 70 | 63 |
At which unit of labour does MP become zero, and what is TP there?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
MP₈ = TP₈ − TP₇ = 70 − 70 = 0: the 8th worker adds nothing.
TP is at its maximum (70) where MP becomes zero; after that MP is negative and TP falls to 63.
Worth noting
TP is already 70 at the 7th unit, but the 7th worker's MP is 4, not 0.
- Concept
- Maximum TP and zero MP
- Typical timeTypical
- 70 s
- Your timeYours
- —
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