Exhibit 7-13 The Total Product of Labor -Given the information in Exhibit 7-13, what is the average product when eight units of labor are employed? A) more than two-thirds units of output B) less than one-third of a unit of output C) one and one-fourth units of output D) two units of output E) cannot be determined from the graph of total product

Question

Quizplus · Accepted Answer

The average product of labor is equal to the total product of labor divided by the number of units of labor employed. From the graph, when eight units of labor are employed, the total product is 10 units of output. Therefore, the average product is 10/8 = 1.25 units of output. Therefore, the best choice is C.

Exhibit 7-13 the Total Product of Labor