Consider a firm that produces agood using capital and labor.We denote by L the quantity oflabor and by K the quantity ofcapital. In the short term, the firmhas a fixed amount of capital K.The short-run productionfunction of the firm is given by f(K; L).Graphically, we measure theamount of work on the abscissaand the output on the ordinate.The average product of labor is(a) the slope of the productionfunction.(b) the area that is below theproduction function.(c) Both of the above answers arecorrect.(d) None of the above is correct.

The average product of labor is the ratio of the total output produced with respect to the total…

Answered: Graphically, we measure the amount of…

Graphically, we measure the amount of work on the abscissa and the output on the ordinate. The average product of labor is (a) the slope of the production function.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a firm that produces a
good using capital and labor.
We denote by L the quantity of
labor and by K the quantity of
capital. In the short term, the firm
has a fixed amount of capital K.
The short-run production
function of the firm is given by f
(K; L).
Graphically, we measure the
amount of work on the abscissa
and the output on the ordinate.
The average product of labor is
(a) the slope of the production
function.
(b) the area that is below the
production function.
(c) Both of the above answers are
correct.
(d) None of the above is correct.

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