The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
-Refer to Table 7- 4. Marginal product of labour begins decreasing with the unit of labour hired. Average product of labour begins decreasing with the unit of labour hired.
A) 4th; 5th
B) 3rd; 4th
C) 4th; 3rd
D) 3rd; 2nd
E) 2nd; 3rd
Correct Answer:
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