ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the demand curve
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the average product of labour (
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total revenue curve
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the marginal product of labour (
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Detailed explanation-1: -The slope of the total product curve for labor equals the change in output (Q) divided by the change in units of labor (L):
Detailed explanation-2: -The marginal product of labor is the slope of the total product curve, which is the production function plotted against labor usage for a fixed level of usage of the capital input. In the neoclassical theory of competitive markets, the marginal product of labor equals the real wage.
Detailed explanation-3: -Relationship between Total Product and Marginal Product TP increases at an increasing rate when MP increases. This pattern provides a Total Product Curve with a shape of convex. It then continues till MP reaches the maximum point of TP. Where MP declines and stays positive, TP increases at a decreasing rate.
Detailed explanation-4: -When the marginal product of labour curve is lower than the average product of labour curve, i.e., the MPL < APL, the average product of labour will tend to fall since the marginal product is decreasing with an increase of labour input.