A firm's total product (TP) of labour (L) is given by TP = -L³ + 12L² for 0 ≤ L ≤ 12. Determine (a) the quantity of labour at which average product (AP) is maximised and the maximum AP value, and (b) the quantity of labour at which marginal product (MP) equals average product.

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Accepted Answer

L = 6 workers; maximum AP = 36 units per worker; MP = AP also at L = 6

Waec Model Questions Vol1 2022 Economics Question 4

A firm's total product (TP) of labour (L) is given by TP = -L³ + 12L² for 0 ≤ L ≤ 12. Determine (a) the quantity of labour at which average product (AP) is maximised and the maximum AP value, and (b) the quantity of labour at which marginal product (MP) equals average product.

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Waec Model Questions Vol1 2022 Economics Question 4

A firm's total product (TP) of labour (L) is given by TP = -L³ + 12L² for 0 ≤ L ≤ 12. Determine (a) the quantity of labour at which average product (AP) is maximised and the maximum AP value, and (b) the quantity of labour at which marginal product (MP) equals average product.

Answer Options

About This Question

Master the Exam!

A firm's total product (TP) of labour (L) is given by TP = -L³ + 12L² for 0 ≤ L ≤ 12. Determine (a) the quantity of labour at which average product (AP) is maximised and the maximum AP value, and (b) the quantity of labour at which marginal product (MP) equals average product.