The average product of labor can be illustrated geometrically as the:
A) slope of the total product curve with respect to labor.
B) slope of the total product curve with respect to capital.
C) slope of a chord from the origin out to the total product curve at the specified level of labor.
D) inverse of the slope of a chord from the origin out to the total product curve at the specified level of labor.
E) slope of the total product curve with respect to labor divided by the slope of the total product curve with respect to capital.

Question

Quizplus · Accepted Answer

The average product of labor can be obtained by dividing the total product of labor by the amount of labor used. Geometrically, the total product curve shows the total amount of output produced by different levels of labor. A chord drawn from the origin to the total product curve at the specified level of labor represents the total product of labor. Dividing this by the amount of labor used gives the average product of labor. Therefore, the slope of this chord represents the average product of labor.

The Average Product of Labor Can Be Illustrated Geometrically as The