Question

Output 10 18 Labor The above table shows the short-run production function for Alberts Pretzels. The average product of labor O A. decreases throughout O B. increases first and then decreases O C increases throughout O D. decreases frst and then increases. Click to select your answer Home End 4 5 6 7 8 9 R T Y U O IP F G H J

Answer 1

Q1. Answer is A. Decreases throughout.

Q2. Answer is C. Both A and B above.

Explanation for both is given by computing the table as follows:

Labour	Total output		Marginal	Average Output
			Ouput
1	10		10	10
2	18		8	9
3	24		6	8
4	28		4	7
5	30		2	6

As shown in table, it is reflecting clearly that Marginal output is decling on each increase in labour.

Moreover, the marginal and average is equal at 1 unit of labour. After this both these are also declining.