Units of labourFixed capitalTotal productAverage productMarginal product010−−−11010101021025?153105016.7254108020.03051010621.226\begin{array}{c|c}

\text{Units of labour} & \text{Fixed capital} & \text{Total product} & \text{Average product} & \text{Marginal product} \\

\hline

0 & 10 & - & - & - \\

\hline

1 & 10 & 10 & 10 & 10 \\

\hline

2 & 10 & 25 & ? & 15 \\

\hline

3 & 10 & 50 & 16.7 & 25 \\

\hline

4 & 10 & 80 & 20.0 & 30 \\

\hline

5 & 10 & 106 & 21.2 & 26 \\

\end{array}

Calculate the average product when the 2nd labour was employed 12.5

  • A 12.5
  • B 12
  • C 15
  • D 10

The correct answer is A. 12.5

Average Product = total product ÷ Labour Employed

TPL/1 = 25/2= 12.5

Average product = 12.5

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