-Based on the above figure of the costs at Barney's Bagel Bakery, at which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 500 bagels
B) at 2000 bagels
C) at 3000 bagels
D) None of the above because the marginal and average products of labor can never be equal.

Question

-Based on the above figure of the costs at Barney's Bagel Bakery, at which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 500 bagels 
B) at 2000 bagels 
C) at 3000 bagels 
D) None of the above because the marginal and average products of labor can never be equal.

Quizplus · Accepted Answer

The marginal product of labor equals the average product of labor at the point where the average product is at its maximum. This typically occurs at an intermediate level of output, such as 2000 bagels in this scenario.

-Based on the Above Figure of the Costs at Barney's