-Figure 7-2 shows how much a firm could produce with various amounts of labor holding capital and technology constant.What is the average product of labor when 20 units of labor are employed?
A)230 units
B)11.5 units
C)130 units
D)6.5 units
E)110 units

Question

-Figure 7-2 shows how much a firm could produce with various amounts of labor holding capital and technology constant.What is the average product of labor when 20 units of labor are employed?
A)230 units 
B)11.5 units 
C)130 units 
D)6.5 units 
E)110 units

Quizplus · Accepted Answer

The average product of labor is calculated by dividing the total output by the number of units of labor employed. If the total output with 20 units of labor is 230 units, then the average product of labor is 230 units / 20 units of labor = 11.5 units.

-Figure 7-2 Shows How Much a Firm Could Produce with Various