The graph below illustrates the average and marginal product of labour for Get Smart Enterprises.

-Refer to the graph above to answer this question.How many units of labour does the firm need to employ to achieve an output that minimizes marginal cost?

Question

The graph below illustrates the average and marginal product of labour for Get Smart Enterprises.
 
-Refer to the graph above to answer this question.How many units of labour does the firm need to employ to achieve an output that minimizes marginal cost?

Quizplus · Accepted Answer

The output level where MC is at its minimum is where MC intersects with AVC. This happens at a quantity of 6 units of labour. Therefore, the firm needs to employ 6 units of labour to achieve an output that minimizes marginal cost.

The Graph Below Illustrates the Average and Marginal Product of Labour