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

Question

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

Quizplus · Accepted Answer

From the table, when the capital input increases from 5 to 6, the output increases from 2,549 to 2,991, giving an increase in output of 442 units. Therefore, the average product of capital is:

(APK) = (Output increase)/(Capital increase)

(APK) = 442/1 = 442

So, the average product of capital to produce 2,991 units of output is 442. Dividing this by the output (2,991) and multiplying by 100 gives us:

(442/2,991) x 100 = 14.8

Therefore, the average product of capital is 14.8.

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