11. Answer the questions which follow from the information given in the table.
Units of Total Average Marginal
Labor Product Product Product
0 0 0 0
1 320
2 384
3 1104
4 352
5 192
6 1680
a. If one unit of labor is hired, what is total product?
b. If two units of labor are hired, what is average product?
c. If three units of labor are hired, what is marginal product?
d. If four units of labor are hired, what is total product.
e. If five units of labor are hired, what is average product?
11. Answer the questions which follow from the information given in the table.
Units of Total Average Marginal
Labor Product Product Product
0 0 0 0
1 320
2 384
3 1104
4 352
5 192
6 1680
a. If one unit of labor is hired, what is total product?
b. If two units of labor are hired, what is average product?
c. If three units of labor are hired, what is marginal product?
d. If four units of labor are hired, what is total product.
e. If five units of labor are hired, what is average product?
Related textbook solutions
Related questions
Suppose a firm in a competitive industry faces an equilibrium product price of $2 per unit of output. Table A provides information on the output produced by various amounts of labor. Use this information to complete the remaining columns of Table A, and to fill in the labor demand schedule in Table B.
Table A: Production Schedule Units of Labor Total Product
| Units of Labor | Total Product | AP | MP | MRP |
| 0 | 0 | Ā | Ā | Ā |
| 1 | 13 | Ā | Ā | Ā |
| 2 | 25 | Ā | Ā | Ā |
| 3 | 34 | Ā | Ā | Ā |
| 4 | 42 | Ā | Ā | Ā |
| 5 | 46 | Ā | Ā | Ā |
| 6 | 48 | Ā | Ā | Ā |
(a) Complete Table A, where AP is the average product of labor, MP is the marginal product of labor, MRP is the marginal revenue product of labor.
(b) Briefly explain why the marginal revenue product of labor (MRP) will be equal to the value of the marginal product of labor (V MP) in this market
| Wage Rate | Quantity Demanded |
| 24 | Ā |
| 16 | Ā |
| 8 | Ā |
(c) Complete Table B, with the labor demand schedule for this firm at different wage rates.
(d) If the equilibrium market wage rate is $8, what is the equilibrium quantity of labor hired by the firm?
The following table shows the quantity of workers and total output for a local pizza shop. Use the table below to answer the following questions.
a) When the owner hires 4 workers, what is the average product of labor?
b) What is the marginal product of the fifth worker?
c) If the marginal product of the second worker is 6, what is the total number of pizzas produced when 2 workers are hired?
d) Assuming that the marginal product of the second worker is 6, with which worker hired does the law of diminishing returns set in?
| Quantity of Workers | Total Output |
| 0 | 0 |
| 1 | 5 |
| 2 | a |
| 3 | 19 |
| 4 | 24 |
| 5 | 28 |
| 6 | 26 |
