Question 27
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 |
What is the average product when 9 units of labour are employed?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
AP₉ = 63 ÷ 9 = 7.
Worth noting
−7 is MP of the 9th unit; 8.75 is AP at 8 units.
- Concept
- AP when TP is falling
- Typical timeTypical
- 70 s
- Your timeYours
- —
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Ten questions from Production Function: TP, MP and AP, at your own pace.