If 4 units of labour produce 70 units of‘x’and 5 units of labour p

1.	If 4 units of labour produce 70 units of‘x’and 5 units of labour produce 75 units of ‘x’, calculate Marginal product and Average product.
Answer» Calculation of Marginal product: 4 Labour – 70 Units of ‘x’ 5 Labour- 75 Units of ‘x’ MP = TPn -TP_n-1 , where TP_n= 75, TP_n-1=70 = 75 – 70 = 5 units of product. So, MP = 5 Calculation of Average Product (AP): AP = TP/Input(Labour) 4 Labour – 70 Units of ‘x’ AP = 70/4 =17.5 with 4 labourers and capital 5 Labour- 75 Units of ‘x’ AP = 75/5 = 15 with 5 labourers and capital.

If 4 units of labour produce 70 units of‘x’and 5 units of labour produce 75 units of ‘x’, calculate Marginal product and Average product.

Answer»

Calculation of Marginal product:

4 Labour – 70 Units of ‘x’

5 Labour- 75 Units of ‘x’

MP = TPn -TP_n-1 , where TP_n= 75, TP_n-1=70

= 75 – 70 = 5

units of product.

So, MP = 5

Calculation of Average Product (AP): AP

= TP/Input(Labour) 4 Labour – 70 Units of ‘x’

AP = 70/4 =17.5 with 4 labourers and capital

5 Labour- 75 Units of ‘x’

AP = 75/5 = 15 with 5 labourers and capital.