Question

QUESTION 46 of the firm produces 120 units of output with 12 workers, what is the average product of labor? 10 units 12 workers 120 units 1200 units QUESTION 47 If the firm produces 120 units of output with 12 workers and 121 units of putput with 13 work 10 units duct of labor 1 unit 121 units QUESTION 43 Which of these assumption is realistic for a firm in the short run? Both the stre of the factory and the number of workers can be varied Only the factory size can be varied, not the number of workers Only the number of workers can be varied, not the factory size Both factory size and the number of workers can be varied QUESTION 49 A firm is currently producing where MO5 and MR 510. This under producing over producing no condusion can be made QUESTION SO Afirm should increase its production when marginal revenue rises and marginal cost stays the same marginal courses and marginal revenue stays the same both marginal cost and marginal revenue realing both marginal cost and marginal revenue are ring Click Sand S a ndwich Bow All A MacBook Pro j esc

Answer 1

Ans) 1) Average product of labour = total quantity ÷ total number of workers = 120÷12 = 10units.

Option a.

2) Marginal product of labour = change in quantity ÷ change in number of workers = (121-120)÷(13-12) = 1

Option c.

3) Short run is a period where output depends upon the number of workers employed. In short run we cannot change the size of factory as it will unfeasible.

Option c.

4) Profit is maximised when MR = MC.

When MC is less than MR, firm is under producing and can increase the output to increase the revenue.

Option b

5) When MC is constant and MR is rising, firm can increase the output as it will bring more profit.

option a.