The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment.
'The equilibrium level of output wiil be 4 units. This is because at this point the two conditions of equilibrium (using MR-MC approach are met . This can be seen...
There are two conditions of producer's equilibrium:
(i) MC = MR
(ii) MC is greater than MR after equilibrium.
The condition are fulfilled at 4 units of output.
Output (Units)
MC (in Rs.)
MR (in Rs.)
1
2
3
12
10
9
10
10
10
4
10
10
5
13
10
Explanation:
(i) So long...