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The Following Data Show the Total Output for a Firm

Question 26

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.  Labour per unit of time  Total output 00125275317542505305\begin{array} { | l | l | } \hline \text { Labour per unit of time } & \text { Total output } \\\hline 0 & 0 \\\hline 1 & 25 \\\hline 2 & 75 \\\hline 3 & 175 \\\hline 4 & 250 \\\hline 5 & 305 \\\hline\end{array} TABLE 7- 4
-Refer to Table 7- 4.Marginal product of labour begins decreasing with the unit of labour hired.Average product of labour begins decreasing with the unit of labour hired.


A) 3rd; 2nd
B) 2nd; 3rd
C) 4th; 5th
D) 3rd; 4th
E) 4th; 3rd

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