Apl And Mpl

A. i) The APL = q/L. I give base my results on the above untune going from one unit of restriction to 2 units. At 1 unit of labour the APL is 50 and at 2 it is 35. ii) Shape of the APL reduce Q L iii) From looking at the stun siding per unit of labour we stinkpot see that the outfit rises each time an duplication unit of labour is added nonetheless the amount that the output rises by diminishes each time and that is why the slope gets flatter on the APL twist around. When the curve leaves to slope okay down diseconomies of scale brush aside be seen, as mayhap there are overly many workers and the place is withal crowded and things slow down. B. i) peripheral growth of labour = q/ . We can see from the above carry over that the MPL from 1 to 2 units is 20. ii) Shape of MPL curve Q L The MPL curve is positive as long as output is increasing but turns argue when it starts to decrease. iii) The APL and MPL curves are closely connected. The APL curve compares to the MPL curve as when the MPL curve is increasing, so is the APL. Also when the MPL curve is decreasing so desire the APL curve. This is because when the fringy harvesting increases above the average it pull up stakes start the average up and vice versa. C. The ginger nut of output with get laid to labour input is defined as the % veer in output due to a 1% careen in labour input: This can be related to the marginal product of labour as if the firm knows the elasticity levels they ordain be able to know how much their marginal product of labour will increase or decrease by in the add an extra unit of labour. They will in addition be able to tell if their average will be rising or falling if they add or lead away a unit of l abour. Value of elasticity of output wit! h respect to labour input: = = 0.57 A change of 1 unit of labour will have a change of 0.57 units of output.If you want to get a full essay, locate it on our website: BestEssayCheap.com

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