Which of the following about average product and marginal product is always true?
i) marginal product intersects the average product at its maximum
ii) marginal product is always above average product
iii) average product is always above marginal product
iv) if marginal product stays constant, the average product can still rise or fall
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Average Product
Ten units of labour are hired and the resulting average product is 50 units.
Average and Marginal Product
If a firm is at a point where MP=8 and AP=5 then an increase in one unit of labour will
If a firm is at a point where MP=3 and AP=5 then
Numbers listed are units of output for each combination of labour and plant size
If this firm is in short run and has plant size 4, what is its average product of labour when it employs 5 units of labour?
As the quantity of labour employed increases,
When there is technological advancement,
When 4 units of labour are hired, total output is
Practice: Marginal Product
John makes 2 pizzas and then we add Eric and he makes 1 pizza. Each of them is paid $10.
Which of the following are always true? (more than one answer can be true!)
Marginal product and average product curves will shift up if
a) When 5 units of labour are employed, the marginal product is ________
b) ___True___False marginal product is constant for all levels of labour. ________
c) When 8 units of labour are employed, the average product is ________
Use the chart above to answer the following questions
If the firm changes from 4 units of labour and 2 plants to 5 units of labour and 4 plants, the average product per unit of labour
Practice: Marginal vs Average Product
Which of the following statements about the relationship between marginal product and the average product is correct?
When marginal product is rising, which of the following is true?
Your business has 15 units of labor and the current output of milkshakes is 150 units. You hire one more unit of labor and the output increases to 155 milkshakes. What will happen?