If the marginal products of the first five units of labor are 120,105,85,60,and 30,respectively,the average product of five units of labor is ________ units of output.
A) 6
B) 30
C) 80
D) 90
E) 150

Question

Quizplus · Accepted Answer

Average product of labor is calculated by dividing the total output by the total number of units of labor. Here, the total output produced by five units of labor is the sum of their marginal products:
120 + 105 + 85 + 60 + 30 = 400
Therefore, the average product of labor is:
400/5 = 80 units of output. 
So, the answer is C.

If the Marginal Products of the First Five Units of Labor