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Chapter 22: Q.20 (page 509)

If the firm were to employ an 8th unit of labour, its total product would rise to 380 units of output. What would be the resulting values of the average product of labour and of the marginal product of labour?

Short Answer

Expert verified

The average product of labour is47.5and the marginal product of labour is20

Step by step solution

01

Introduction

The firm was to employ an 8thunit of labour.

The total product would increase to 380inputs.

02

Explanation

Using the formula for the average product, where Q is the quantity produced and L is the labour used

APL=QL

=3807

=47.5

03

Marginal product of labour

For marginal products, we use,

∆Qis a change in quantity and ∆Lis change in labour

MPL=ΔQΔL

=201

=20

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