The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When
answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4
-Refer to Table 7-4.hired. Average product of labour begins decreasing with the unit of labour hired.
A) 4th; 5th
B) 3rd; 4th
C) 4th; 3rd
D) 3rd; 2nd
E) 2nd; 3rd

Question

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When
answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.  TABLE 7-4
-Refer to Table 7-4.hired. Average product of labour begins decreasing with the unit of labour hired.
A) 4th; 5th 
B) 3rd; 4th 
C) 4th; 3rd 
D) 3rd; 2nd 
E) 2nd; 3rd

Quizplus · Accepted Answer

Average product of labour begins decreasing with the 4th unit of labour hired.

The Following Data Show the Total Output for a Firm