The average product of capital of producing 2,991 units of output (find point B) in the above table is
A)11.1.
B)21.9.
C)37.
D)73.

Question

Quizplus · Accepted Answer

To find the average product of capital, we need to divide the total product by the total units of capital. From the table, we can see that the total product for 2,991 units of output is 65,850. The total units of capital is 3,006. Therefore, the average product of capital is 65,850/3,006 = 21.9. So, the correct answer is choice B.

The Average Product of Capital of Producing 2,991 Units of Output