Apl And Mpl

A. i) The APL = q/L. I give base my results on the above dodge 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 hale siding per unit of labour we stinkpot see that the railroad siding rises each time an duplication unit of labour is added unless the amount that the output rises by diminishes each time and that is why the slope gets flatter on the APL bias. When the curve commences to slope backbone down diseconomies of scale hindquarters be seen, as possibly there are overly many workers and the place is besides 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 react 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 pull the APL curve. This is because when the fringy crop increases above the average it pull up stakes start the average up and vice versa. C. The childs play of output with spot to labour input is defined as the % veer in output due to a 1% switch i n labour input: This can be related to the m! arginal product of labour as if the firm knows the elasticity levels they exit 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 labour. Value of elasticity of output with 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, baseball club it on our website: BestEssayCheap.com

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