The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.The average product of labour is highest when the firm hires
A)1 unit of labour.
B)2 units of labour.
C)3 units of labour.
D)4 units of labour.
E)5 units of labour.

Question

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
  TABLE 7-3
-Refer to Table 7-3.The average product of labour is highest when the firm hires
A)1 unit of labour. 
B)2 units of labour. 
C)3 units of labour. 
D)4 units of labour. 
E)5 units of labour.

Quizplus · Accepted Answer

The Answer of The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
  TABLE 7-3
-Refer to Table 7-3.The average product of labour is highest when the firm hires
A)1 unit of labour. 
B)2 units of labour. 
C)3 units of labour. 
D)4 units of labour. 
E)5 units of labour.

The Following Data Show the Total Output for a Firm