Given the Production Function $Q = L ^ { 2 }$

question 76

Multiple Choice

Given the production function $Q = L ^ { 2 }$ , calculate the average product of labor for $L = 2$ , and also calculate the marginal product of labor between $\mathrm { L } = 1$ and $\mathrm { L } = 2$ .

• A)The average product of labor is 2 and the marginal product of labor is 2.
• B)The average product of labor is 1 and the marginal product of labor is 3.
• C)The average product of labor is 3 and the marginal product of labor is 2.
• D)The average product of labor is 2 and the marginal product of labor is 3.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing participants in an arm's length transaction.

Historical Cost

The original monetary value of an economic item. Historical cost is based on the stable measuring unit assumption.

Capital Stock

The amount of ownership shares of a company, including both common and preferred stock, authorized and issued to investors.

Stated Value

An arbitrary value assigned to a company's share that does not have a par value, used for accounting purposes.