If the marginal productivity of labor is constant for all le

If the marginal productivity of labor is constant for all levels of output, then the average productivity of labor Oa. is constant Ob. equals the marginal product of labor. c. Both a and b Od. Either a or b but not both

Solution

First question: Option C (both a and b). Note that when MPL is greater than APL, APL rises, and when MPL is less than APL, APL falls. It is when both are equal to each other, APL is constant. Hence when MPL is constant for all levels of output, APL is also constant and is equal to MPL

Second question: Option D (MPL). slope of the total product is the marginal product of that input for which the total product is drawn. It is the change in production brought about by the increase in input by 1 unit

Third question: Option B is correct. MRTS is given by MPL/MPK. Here MPL = 0.5*K^1.5L^-0.5 and MPK = 1.5*K^0.5L^0.5. Now MRTS is given by

= [0.5*K^1.5L^-0.5]/[1.5*K^0.5L^0.5]

= (1/3)*(K/L)