Microeconomics: Production and Costs · Class 11 · CBSE · Commerce Economics
A firm's total product is 10 units with one worker, 24 units with two workers, 33 units with three workers, and 40 units with four workers. What are…
Practice question from Microeconomics: Production and Costs (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · MCQ · Q-886980
A firm's total product is 10 units with one worker, 24 units with two workers, 33 units with three workers, and 40 units with four workers. What are the marginal product of the fourth worker and the average product when four workers are employed?
- A.Marginal product is 7 units and average product is 10 units; average product rises.
- B.Marginal product is 7 units and average product is 10 units; average product falls.Correct answer
- C.Marginal product is 10 units and average product is 7 units; average product falls.
- D.Marginal product is 40 units and average product is 10 units; average product remains constant.
Solution
The marginal product of the fourth worker is units. The average product with four workers is units. Since marginal product is less than average product, average product falls.
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