Exhibit 7-2

-Given the information in Exhibit 7-2, what is the average product of the fourth unit of labor?
A) 5 pairs of shoes
B) 10 pairs of shoes
C) 20 pairs of shoes
D) 50 pairs of shoes
E) 80 pairs of shoes

Question

Exhibit 7-2
 
-Given the information in Exhibit 7-2, what is the average product of the fourth unit of labor?
A) 5 pairs of shoes 
B) 10 pairs of shoes 
C) 20 pairs of shoes 
D) 50 pairs of shoes 
E) 80 pairs of shoes

Quizplus · Accepted Answer

The average product of labor is found by dividing the total output by the units of labor. In this case, the fourth unit of labor produces 80 pairs of shoes (as seen in the fourth column). Therefore, the average product of the fourth unit of labor is (80/4) = 20 pairs of shoes.

Exhibit 7-2 -Given the Information in Exhibit 7-2, What Is the Average