ECONOMICS
PROFIT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
|
|
|
|
|
|
|
|
|
|
Detailed explanation-1: -If the marginal product of labor, MPL, is greater than the average product of labor, APL, then each additional unit of labor is more productive than the average of the previous units. Therefore, by adding the last unit, the overall average increases. If MPL is greater than APL, then APL is increasing.
Detailed explanation-2: -Marginal product is the additional output that is generated by an additional worker. With a second worker, production increases by 5 and with the third worker it increases by 6. When these workers are added, the marginal product increases.
Detailed explanation-3: -The marginal product of labor is the additional output resulting from hiring another worker. This tends to apply to established businesses, like an automobile factory that adds a new worker to the production line.
Detailed explanation-4: -The change in output from adding one more worker is the marginal product of labor. At the beginning, adding each worker will result in increasing marginal returns. Workers will be able to specialize and gain skills. At some point, adding each worker will result in diminishing marginal returns.