-The table above shows the total product schedule for The X Firm. The average product of labour is maximised at ________ workers because ________.
A) 3; output starts to decrease with the 4th worker
B) 5; the APL exceeds the MPL for the 5th worker
C) 5; output is maximised with the 5th worker
D) 4; the marginal product of labour is increasing with the 4th worker
E) 4; productivity is maximised when the 4th worker is employed

Question

-The table above shows the total product schedule for The X Firm. The average product of labour is maximised at ________ workers because ________.
A) 3; output starts to decrease with the 4th worker 
B) 5; the APL exceeds the MPL for the 5th worker 
C) 5; output is maximised with the 5th worker 
D) 4; the marginal product of labour is increasing with the 4th worker 
E) 4; productivity is maximised when the 4th worker is employed

Quizplus · Accepted Answer

The average product of labour (APL) is maximised when adding more workers does not increase the average output per worker anymore. This typically happens before the total output starts to decrease or before the marginal product of labour (MPL) becomes negative. The choice indicating productivity is maximised with the 4th worker suggests this is the point where adding another worker does not increase the APL further, aligning with the concept of maximizing APL.

-The Table Above Shows the Total Product Schedule for the X