How is the average product of labor calculated? What will be ...

[2125004343]

How is the average product of labor calculated?
 
  What will be an ideal response?

Question 2

Refer to Table 8.3 . Assume the price of labor is 5.00 and the price of capital is 10.00 and the firm's fixed costs are 15 .
 
  What production technique will be used to produce the first unit of output? The second? The third? What are the firm's total variable costs, total costs, and marginal costs of producing one unit of output? Two units of output? Three units of output?

[tdewitt]

Answer to Question 1

The average product of labor is calculated by taking total output (or total product) and dividing by the level of labor.

Answer to Question 2

The firm will produce the first unit using technique B, the second unit using technique A, and be indifferent between techniques A and B for the third unit. TVC are 25, 45, and 60; TC are 40, 60, and 75; MC are 25, 20, and 15

[2125004343]

Thanks for the timely response, appreciate it

[daiying98]

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