Figure 7.3 Fancy Footwear manufactures shoes.Figure 7.3 shows Fancy Footwear's marginal product of labour and average product of labour curves in the short run.
-Refer to Figure 7.3.Which of the following statements correctly describes the curves in the figure?
A)The marginal product of labour curve is represented by curve A and the average product of labour curve is represented by curve B.
B)The marginal product of labour curve is represented by curve B and the average product of labour curve is represented by curve A.
C)Curve A could represent either the average product curve or the marginal product curve.Curve B represents the total product curve.
D)Curve B could represent either the average product curve or the marginal product curve.Curve A represents the total product curve.

Question

Figure 7.3  Fancy Footwear manufactures shoes.Figure 7.3 shows Fancy Footwear's marginal product of labour and average product of labour curves in the short run.
-Refer to Figure 7.3.Which of the following statements correctly describes the curves in the figure?
A)The marginal product of labour curve is represented by curve A and the average product of labour curve is represented by curve B. 
B)The marginal product of labour curve is represented by curve B and the average product of labour curve is represented by curve A. 
C)Curve A could represent either the average product curve or the marginal product curve.Curve B represents the total product curve. 
D)Curve B could represent either the average product curve or the marginal product curve.Curve A represents the total product curve.

Quizplus · Accepted Answer

Curve B represents the marginal product of labour as it starts to decline after reaching its maximum. Curve A represents the average product of labour as it is continuously increasing until it reaches its maximum point and then starts to decline. Therefore, option B is the correct answer.

Figure 73 Fancy Footwear Manufactures Shoes