Capital is held fixed. The average product of 3 workers is 8 units, the marginal product of the 4th worker is 8 units, and the average product of 5 workers is 7.4 units. Which of the following is correct?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → The MP of the 5th worker is 5 units, and the AP is 8 units with both 3 and 4 workers.
Given:
AP of 3 workers = 8
MP of the 4th worker = 8
AP of 5 workers = 7.4
TP = AP × L, and TP rises by each MP.
\( TP_3 = 8 \times 3 = 24 \)
\( TP_4 = 24 + 8 = 32 \)
\( AP_4 = 32/4 = 8 \)
\( TP_5 = 7.4 \times 5 = 37 \)
\( MP_5 = 37 - 32 = 5 \)
MP5 = 5 units, and AP stays at 8 with 3 and 4 workers, because the 4th worker adds just the average.
NCERT (2026-27): “3.3.2 Average Product Average product is defined as the output per unit of variable input. … Values in this column are obtained by dividing TP (column 2) by L (Column 1). …” “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.” |