NARRBEGIN: Exhibit 7-2
Exhibit 7-2

-Given the information in Exhibit 7-2, what is the average product of the third unit of labor?
A) 45 pairs of shoes
B) 25 pairs of shoes
C) 15 pairs of shoes
D) $45
E) $25

Question

NARRBEGIN: Exhibit 7-2
Exhibit 7-2
 
-Given the information in Exhibit 7-2, what is the average product of the third unit of labor?
A) 45 pairs of shoes 
B) 25 pairs of shoes 
C) 15 pairs of shoes 
D) $45 
E) $25

Quizplus · Accepted Answer

The average product of labor is equal to the total output divided by the number of units of labor. In this case, the total output when using three units of labor is 75 pairs of shoes (see the third column of the table). Thus, the average product of the third unit of labor is equal to 75 pairs of shoes divided by 3 units of labor, or 25 pairs of shoes per unit of labor. Therefore, the answer is B.

NARRBEGIN: Exhibit 7-2 Exhibit 7-2