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Author Question: How is the average product of labor calculated? What will be an ideal ... (Read 45 times)

2125004343

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on: Jun 29, 2018
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?


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tdewitt

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Reply #1 on: Jun 29, 2018
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

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

bigsis44

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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