A textile factory employs 200 workers and produces 5,000 units of fabric per month. When 50 additional workers are hired, output rises to 5,800 units.

(a) Calculate the average product of labour (units per worker) before and after the increase.
(b) Assuming the marginal product of the additional workers remains constant, estimate how many extra workers are needed to raise output by another 2,000 units.

Question

A textile factory employs 200 workers and produces 5,000 units of fabric per month. When 50 additional workers are hired, output rises to 5,800 units.

(a) Calculate the average product of labour (units per worker) before and after the increase.
(b) Assuming the marginal product of the additional workers remains constant, estimate how many extra workers are needed to raise output by another 2,000 units.

Accepted Answer

Average product before: 25 units/worker; after: 23.2 units/worker; additional workers needed: 125

Waec Model Questions Vol1 2021 Geography Question 13

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