Asked by Lucia Cantu on Jul 20, 2024
Verified
When labor usage is at 12 units, output is 36 units. From this we may infer that:
A) the marginal product of labor is 3.
B) the total product of labor is 1/3.
C) the average product of labor is 3.
D) none of the above
Marginal Product
The extra production yielded from the use of one additional unit of a specific input while keeping all other inputs unchanged.
Labor
Refers to human effort, both physical and mental, used in the production of goods and services.
Output
Output is the quantity of goods or services produced by a company, industry, or economy within a specified period.
- Learn about the significance and calculation of the marginal product of labor.
Verified Answer
NK
Nasir KhalidJul 23, 2024
Final Answer :
C
Explanation :
Total product of labor is the total amount of output produced by all workers. It is calculated by multiplying the labor input by the average product of labor. Since 12 units of labor produce 36 output units, the average product of labor is 3 (36/12). Therefore, choice C is correct. The marginal product of labor is the additional output produced by an additional unit of labor. It is not given in this scenario, so choice A is incorrect. Choice B is incorrect because it suggests that the total product of labor is less than 1, which is not possible.
Learning Objectives
- Learn about the significance and calculation of the marginal product of labor.