-Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 0 gallons
B) at 10 gallons
C) at 40 gallons
D) at 60 gallons

Question

-Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 0 gallons 
B) at 10 gallons 
C) at 40 gallons 
D) at 60 gallons

Quizplus · Accepted Answer

The marginal product of labor equals the average product of labor at the point where the average product is at its maximum. This typically occurs at the midpoint of the production process, which is often around 40 gallons in this context.

-Some of the Cost Curves for Ike's Ice Cream Kitchen