We appreciate your visit to In the short run Total Product Q can exceed Marginal Product MP Multiple Choice In the short run which of the following equations represents Average. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
In the short run, the Average Product (AP) is represented by the equation AP = Q/L, where Q is the total output and L is the quantity of labor, effectively measuring the output per unit of labor. Therefore option (b) AP = Q/L is the correct answer
Explanation:
The question you're asking relates to the concepts of Total Product (TP), Marginal Product (MP), and Average Product (AP) in the context of short-run production functions within economics. To clarify, Total Product can indeed exceed Marginal Product in certain scenarios, especially as the law of diminishing marginal returns takes effect. Regarding the multiple-choice question, the correct representation of Average Product (AP) in the short run is given by the equation AP = Q/L, where Q is the total output produced and L is the quantity of labor employed. This equation essentially calculates the output produced per unit of labor, illustrating how efficiently the labor is being utilized to generate output in the short-run production function.
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