\(\begin{array}{c|c}
\text{Units of labour} & \text{Fixed capital} & \text{Total product} & \text{Average product} & \text{Marginal product} \\
\hline
0 & 10 & – & – & – \\
\hline
1 & 10 & 10 & 10 & 10 \\
\hline
2 & 10 & 25 & ? & 15 \\
\hline
3 & 10 & 50 & 16.7 & 25 \\
\hline
4 & 10 & 80 & 20.0 & 30 \\
\hline
5 & 10 & 106 & 21.2 & 26 \\
\end{array}\)
Calculate the average product when the 2nd labour was employed 12.5
-
12.5
- 12
- 15
- 10
The correct answer is: A
Explanation
Average Product = total product ÷ Labour EmployedTPL/1 = 25/2= 12.5
Average product = 12.5