Upon graduation, you decide to create your own company and produce widgets. Comp
ID: 1226157 • Letter: U
Question
Upon graduation, you decide to create your own company and produce widgets. Compute APL (Average Product of Labor) and MPL (Marginal Product of Labor) and the total cost (TC):
Price of Labor = $10 per hour.
Price of Capital = $20 per hour
At which level of output does the marginal product of labor begin to decrease?
At which level of output does the marginal product of labor begin to decrease?
(Fill in the Box and Show All Work)
Labor
Output
Capital
APL
MPL
TC
0
0
3
1
200
3
2
500
3
3
750
3
4
950
3
5
1100
3
Labor
Output
Capital
APL
MPL
TC
0
0
3
1
200
3
2
500
3
3
750
3
4
950
3
5
1100
3
Explanation / Answer
Labor
Output
Capital
APL
MPL
TC
0
0
3
0
0
60
1
200
3
200
200
70
2
500
3
250
300
80
3
750
3
250
250
90
4
950
3
237.5
200
100
5
1100
3
220
150
110
The marginal product of labor begins to decrease at 950th level of output.
Labor
Output
Capital
APL
MPL
TC
0
0
3
0
0
60
1
200
3
200
200
70
2
500
3
250
300
80
3
750
3
250
250
90
4
950
3
237.5
200
100
5
1100
3
220
150
110
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