Question

What is the total, average, and marginal product for Ultimate Pretzel, a pretzel shop, based on the provided marginal product curve (labeled mp) for its daily production?

A) Total product, average product, and marginal product
B) Productivity, mean product, and additional product
C) Cumulative product, mean value product, and extra product
D) Overall output, average yield, and incremental output

Answer 1

Marginal product is the additional output of one more worker. Total product is the total output produced by all workers. Average product is the total product divided by the number of workers.

Step-by-step explanation:

Marginal product is the additional output of one more worker. It is calculated as the change in total product divided by the change in labor. In the provided table, the marginal product of the first worker is four trees per day, while the marginal product of the second worker is six trees per day. The marginal product of each additional worker could be different.

Total product is the total output produced by all workers. Average product is the total product divided by the number of workers. Average product can be calculated by dividing the total product by the number of workers at each stage of production.