The marginal products of the first, second and third units of labour are 6, 12 and 3 units of output. Other inputs are held constant. What is the average product of labour when 3 units of labour are employed?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 7 units
Given:
MP of the 1st unit = 6
MP of the 2nd unit = 12
MP of the 3rd unit = 3
Total product is the sum of the MPs, and AP is the average of all MPs up to that level.
\( TP = 6 + 12 + 3 = 21 \)
\( AP = 21 / 3 = 7 \) units
21 is the total product, not the average.
NCERT (2026-27): “3.3.3 Marginal Product … Since inputs cannot take negative values, marginal product is undefined at zero level of input employment. For any level of an input, the sum of marginal products of every preceeding unit of that input gives the total product. So total product is the sum of marginal products.” “3.3.3 Marginal Product … Average product of an input at any level of employment is the average of all marginal products up to that level. Average and marginal products are often referred to as average and marginal returns, respectively, to the variable input.” |