Asked by Vanessa Green on May 11, 2024
Verified
Refer to Figure 6.2.1 above. At which point on the total product curve is the average product of labor the highest?
A) Point A
B) Point B
C) Point C
D) Point D
E) None of the above
Total Product Curve
A graphical representation showing how total output of goods varies with changes in the quantity of a single input, holding all other inputs constant.
Average Product
The yield generated for every unit of a production input, determined by dividing the overall output by the amount of the input used.
Labor
The human effort, whether physical or mental, that is used in the production of goods and services.
- Expound on the doctrine of diminishing returns and its impact on operational output.
- Master the concept and determination of the marginal product of labor.
Verified Answer
CB
Chelsea BaileyMay 14, 2024
Final Answer :
B
Explanation :
The average product of labor is highest where the total product curve reaches its maximum point. In this graph, the maximum point is at Point B. At Point B, the slope of the total product curve is zero, which means the marginal product of labor is equal to the average product of labor. As we move away from Point B in either direction, the slope of the total product curve decreases, indicating a decrease in both marginal and average product of labor. Therefore, the correct answer is B.
Learning Objectives
- Expound on the doctrine of diminishing returns and its impact on operational output.
- Master the concept and determination of the marginal product of labor.