Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 7 - Businesses and the Costs of Production - Questions - Page 160: 4

Answer

The solution is shown in the adjacent figure.

Work Step by Step

$Marginal\ Product$ = $\frac{Change \ in\ total\ product}{Change\ in\ labor\ input}$ Example of calculation at inputs of labor = 3 $Marginal\ Product$ = $\frac{51 - 34} {3 - 2}$ = 17 $Average\ Product$ = $\frac{total\ product}{ labor\ input}$ Example of calculation at inputs of labor = 3 $Average\ Product$ = $\frac{51}{ 3}$ = 17
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