The following table gives the marginal product schedule of labour. It is also given that total product of labour is zero at zero level of employment. Calculate the total and average product schedules of labour.
L | MPL |
1 | 3 |
2 | 5 |
3 | 7 |
4 | 5 |
5 | 3 |
6 | 1 |
L | MPL | TP | AP |
1 | 3 | 3 | 3 |
2 | 5 | 8 | 4 |
3 | 7 | 15 | 5 |
4 | 5 | 20 | 5 |
5 | 3 | 23 | 4.6 |
6 | 1 | 24 | 4 |
Given – Total product of labour is zero at zero level of employment
This means that labour is variable factor.
TP – Total Product = MPN+1 + MPN
AP – Average Product = TP / L