Given the total product schedule below, at what level of labor is the average product the highest?
$$\begin{array} { | l | l | l | l | l | l | l | l | }
\hline \text { Units of Labor } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Total Product } & 0 & 2 & 5 & 9 & 11 & 13 & 14 \
\hline
\end{array}$$
A) 2
B) 3
C) 4
D) 5

Question

Given the total product schedule below, at what level of labor is the average product the highest?
$$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline \text { Units of Labor } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline \text { Total Product } & 0 & 2 & 5 & 9 & 11 & 13 & 14 \
\hline
\end{array}$$
A) 2
B) 3
C) 4
D) 5

Quizplus · Accepted Answer

The average product (AP) is calculated by dividing the total product (TP) by the units of labor. For each level of labor, the AP is as follows: 1) 2/1 = 2, 2) 5/2 = 2.5, 3) 9/3 = 3, 4) 11/4 = 2.75, 5) 13/5 = 2.6, 6) 14/6 = 2.33. The highest AP is at 3 units of labor, making option B correct.

Given the Total Product Schedule Below, at What Level of Labor