Question

Take a look at the Figure. Suppose that the firm decided to consider employing the 12th unit of labor, which it has determined would result in a decrease in total product to 370 units of output. If it were to do this, what would be the resulting average product of labour and the marginal product of labour?

Short answer

The resulting average product of labour is$30.83$and the marginal product of labour stays the same.

Step-by-step solution

Introduction

the firm decided to consider employing the$12$th unit of labour

This would result in a decrease in total product to$370$ units of output

Explanation

The marginal product of labour is characterized as the adjustment of the result brought about by adding another unit of the work. Normal item is the type that every specialist can add to add up to the amount delivered and the all-out item is the complete volume of labour and products created by an association's given information.

Calculating the average labour of the product

$A{P}_L=\frac{Q}{L}=\frac{370}{12}=30.83$

Q is the quantity produced and L is the labour

Hence the marginal product of labour stays the same.