Table 11-2

-Refer to Table 11-2.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 is labor is ________ when Manny hires ________ workers.

Question

Table 11-2
 
-Refer to Table 11-2.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 is labor is ________ when Manny hires ________ workers.

Quizplus · Accepted Answer

To find the highest value of average product of labor, we need to calculate the average product of labor for each level of employment and then identify the level of employment with the highest value. The formula for average product of labor is: Average product of labor = Total product of labor / Quantity of labor employed.
 
Using the table, we can calculate the average product of labor as follows:
 
For 1 worker: Average product of labor = 40 / 1 = 40
For 2 workers: Average product of labor = 100 / 2 = 50
For 3 workers: Average product of labor = 150 / 3 = 50
For 4 workers: Average product of labor = 160 / 4 = 40
For 5 workers: Average product of labor = 150 / 5 = 30
 
The highest value of average product of labor is 50, which occurs when Manny hires 2 or 3 workers. However, since the question asks for the number of workers needed when the highest average product is achieved, the answer is 2. Therefore, the best choice is C, with an explanation as given above.

Table 11-2 -Refer to Table 11-2.The Table Above Refers to the Relationship