To calculate the average product of labor and marginal product of labor, you need to have the following information:
1. Total product of labor: It represents the total output produced by a given number of units of labor.
2. Number of units of labor: It is the amount of labor employed or utilized in the production process.
Now, let's calculate the average product of labor and marginal product of labor using the given information:
1. Average Product of Labor (APL):
To find the average product of labor, divide the total product of labor by the number of units of labor employed. The formula is:
APL = Total Product of Labor / Number of Units of Labor
In this case, the total product of labor decreased from 380 units of output (employing 11 units of labor) to 365 units of output (employing 12 units of labor). So, we have:
APL = 365 / 12
Calculating this equation, we get the average product of labor as 30.4.
2. Marginal Product of Labor (MPL):
To calculate the marginal product of labor, subtract the previous total product of labor from the new total product of labor when an additional unit of labor is added. The formula is:
MPL = Change in Total Product of Labor / Change in Number of Units of Labor
In this case, the change in total product of labor is the difference between the new total product (365 units) and the previous total product (380 units), and the change in the number of units of labor is 1 (12 - 11).
MPL = (365 - 380) / 1
Simplifying this equation, the marginal product of labor is calculated as 15.0.
So, the resulting average product of labor is 30.4, and the marginal product of labor is 15.0 when employing the 12th unit of labor.