Table 7.3
-Refer to Table 7.3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The highest value of the average product of labour is ________ when Manny hires ________ workers.
A)80; 3
B)100; 3
C)100; 2
D)80; 4

Question

Table 7.3 
-Refer to Table 7.3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The highest value of the average product of labour is ________ when Manny hires ________ workers.
A)80; 3 
B)100; 3 
C)100; 2 
D)80; 4

Quizplus · Accepted Answer

The highest average product of labor occurs when the marginal product of labor is equal to the average product of labor. In this case, the marginal product of labor starts to decrease after 2 workers, so the highest average product of labor (100) occurs when Manny hires 2 workers. Any additional workers would decrease the average product of labor. Therefore, the correct answer is C) 100; 2.

Table 7.3 -Refer to Table 7.3.The Table Above Refers to the Relationship