Scenario 1: The following is a hypothetical short-run production function:

-Refer to Scenario 1.What is the average product of the first three hours of labor?
A)60
B)80
C)100
D)240

Question

Scenario 1: The following is a hypothetical short-run production function:
 
-Refer to Scenario 1.What is the average product of the first three hours of labor?
A)60 
B)80 
C)100 
D)240

Quizplus · Accepted Answer

To calculate the average product of labor, we divide the total product by the amount of labor used. Based on the production function, the total product of the first three hours of labor would be 240 (80+80+80). Dividing this by the amount of labor (3) gives an average product of 80. Therefore, the answer is (B).

Scenario 1: the Following Is a Hypothetical Short-Run Production Function