Answer to Question #85128 in Microeconomics for Ayanda Lubisi

Question

You operate a car-retailing business with a fixed amount of machinery (capital), but you
have recently changed the number of workers that you employ per hour. As you increased
the number of employees hired per hour from three to five, your total output increased by
five cars to 15 cars per hour. What is the average product of labour at the new levels of
labour?

1. AP = 3 cars per worker
2. AP = 5 cars per worker
3. AP = 4 cars per worker
4. We do not have enough information to answer this question.

Answer 1

1. AP = 3 cars per worker