Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Complete the following table.

Units of Labour      1      2       3          4     5       6  
Average Product (units)   8 10 A 9 B 7
Marginal product (Units) - C 10 D 4 -
Total Product (units) - - E - - -

What will come in place of D?

Options:

6

7

8

9

Correct Answer:

6

Explanation:

The correct answer is Option 1: 6

Calculate A first :

AP= TP/Units of labour

Step 1: Calculate Known Total Product Values

  • From given data:
    • At 1 unit of labour: TP=AP×Labour = 8*1 =8
    • At 2 units of labour: TP=10*2 = 20

Step 2: Find Total Product at 3 Units of Labour

  • Given Marginal Product at 3rd unit = 10, we use:
  • TP₃​=TP₂​+MP₃​ = 20+10 = 30

Step 3: Find A (AP at 3 units of labour)

AP₃= TP₃/L3 = 30/3 = 10

Now Calculate D as explained below:

Step 1: Calculate Total Product at 3 units (E)

  • Given A = 10 (AP at 3 units of labour)
  • TP3​=AP3​×Labour3​
  • TP3=10*3 = 30

Step 2: Calculate Total Product at 4 units

  • Given AP at 4 units = 9
  • TP4​=AP4​×Labour4​
  • TP4= 9* 4 = 36

Step 3: Find D (MP at 4 units of labour)

               D=MP4​ =TP4​TP3​

                D= 36-30 = 6

Units of Labour      1      2       3          4     5       6  
Average Product (units)   8 10 10 9 8 7
Marginal product (Units)   8 12 10 6 4 2
Total Product (units)   8 20 30 36 40 42