The Following Table Gives The Average Product Schedule Of Labour (APL). Find The Total Product (TPL) And Marginal Product (MPL) Schedule Of Labour. L 1 2 3 4 5 6. APL 2 4 5 6 3 4 5 4 3
Introduction
In the realm of economics, the concept of product schedules is crucial in understanding the relationship between the quantity of a variable input, such as labour, and the resulting output. The average product of labour (APL) schedule shows the average output per unit of labour, while the total product of labour (TPL) schedule represents the total output produced by a given quantity of labour. The marginal product of labour (MPL) schedule, on the other hand, measures the additional output generated by one more unit of labour. In this article, we will delve into the world of product schedules and explore how to calculate the TPL and MPL schedules from the given APL schedule.
The Average Product of Labour (APL) Schedule
The APL schedule is a graphical representation of the average output per unit of labour. It is calculated by dividing the total output by the number of units of labour used. The given APL schedule is as follows:
| L (Labour) | APL (Average Product of Labour) |
|---|---|
| 1 | 2 |
| 2 | 4 |
| 3 | 5 |
| 4 | 6 |
| 5 | 3 |
| 6 | 4 |
Calculating the Total Product of Labour (TPL) Schedule
To calculate the TPL schedule, we need to multiply the APL by the number of units of labour used. This will give us the total output produced by each quantity of labour.
| L (Labour) | APL (Average Product of Labour) | TPL (Total Product of Labour) |
|---|---|---|
| 1 | 2 | 2 |
| 2 | 4 | 8 |
| 3 | 5 | 15 |
| 4 | 6 | 24 |
| 5 | 3 | 15 |
| 6 | 4 | 24 |
Calculating the Marginal Product of Labour (MPL) Schedule
The MPL schedule is calculated by finding the difference between the TPL at each level of labour and the TPL at the previous level of labour. This will give us the additional output generated by one more unit of labour.
| L (Labour) | TPL (Total Product of Labour) | MPL (Marginal Product of Labour) |
|---|---|---|
| 1 | 2 | - |
| 2 | 8 | 6 |
| 3 | 15 | 7 |
| 4 | 24 | 9 |
| 5 | 15 | -9 |
| 6 | 24 | -9 |
Interpretation of the Results
The TPL schedule shows that the total output increases as the quantity of labour increases, but at a decreasing rate. This is because the APL schedule shows that the average output per unit of labour decreases as the quantity of labour increases.
The MPL schedule shows that the additional output generated by one more unit of labour increases as the quantity of labour increases, but then decreases as the quantity of labour reaches its maximum level.
Conclusion
In conclusion, the product schedules of labour are crucial in understanding the relationship between the quantity of labour and the resulting output. The APL schedule shows the average output per unit of labour, while the TPL schedule represents the total output produced by a given quantity of labour. The MPL schedule measures the additional output generated by one more unit of labour. By analyzing these schedules, we can gain valuable insights into the production process and make informed decisions about the optimal quantity of labour to use.
Limitations of the Analysis
It is worth noting that this analysis assumes a linear relationship between the quantity of labour and the resulting output. In reality, the relationship may be non-linear, and the product schedules may not follow a smooth curve. Additionally, the analysis assumes that the labour is homogeneous, meaning that all units of labour are identical and interchangeable. In reality, labour may be heterogeneous, and different units of labour may have different levels of productivity.
Future Research Directions
Future research directions may include:
- Investigating the relationship between the quantity of labour and the resulting output in a non-linear setting
- Analyzing the impact of labour heterogeneity on the product schedules
- Examining the effect of other inputs, such as capital, on the product schedules
References
- Mankiw, N. G. (2017). Principles of Economics. Cengage Learning.
- Samuelson, P. A. (2017). Economics. McGraw-Hill Education.
- Varian, H. R. (2017). Microeconomic Analysis. W.W. Norton & Company.
Product Schedules of Labour: A Q&A Guide =============================================
Introduction
In our previous article, we explored the concept of product schedules of labour, including the average product of labour (APL) schedule, the total product of labour (TPL) schedule, and the marginal product of labour (MPL) schedule. In this article, we will answer some frequently asked questions about product schedules of labour to help you better understand this important economic concept.
Q: What is the average product of labour (APL) schedule?
A: The APL schedule is a graphical representation of the average output per unit of labour. It is calculated by dividing the total output by the number of units of labour used.
Q: How is the total product of labour (TPL) schedule calculated?
A: The TPL schedule is calculated by multiplying the APL by the number of units of labour used. This will give you the total output produced by each quantity of labour.
Q: What is the marginal product of labour (MPL) schedule?
A: The MPL schedule is calculated by finding the difference between the TPL at each level of labour and the TPL at the previous level of labour. This will give you the additional output generated by one more unit of labour.
Q: What is the relationship between the APL and TPL schedules?
A: The APL schedule shows the average output per unit of labour, while the TPL schedule represents the total output produced by a given quantity of labour. As the quantity of labour increases, the APL schedule decreases, while the TPL schedule increases.
Q: What is the relationship between the TPL and MPL schedules?
A: The MPL schedule measures the additional output generated by one more unit of labour. As the quantity of labour increases, the MPL schedule increases, but then decreases as the quantity of labour reaches its maximum level.
Q: What are the limitations of the product schedules of labour?
A: The product schedules of labour assume a linear relationship between the quantity of labour and the resulting output. In reality, the relationship may be non-linear, and the product schedules may not follow a smooth curve. Additionally, the analysis assumes that the labour is homogeneous, meaning that all units of labour are identical and interchangeable.
Q: How can the product schedules of labour be used in real-world applications?
A: The product schedules of labour can be used to inform decisions about the optimal quantity of labour to use in a production process. By analyzing the APL, TPL, and MPL schedules, businesses can determine the most efficient use of labour and make informed decisions about hiring and firing.
Q: What are some future research directions for the product schedules of labour?
A: Some potential future research directions include:
- Investigating the relationship between the quantity of labour and the resulting output in a non-linear setting
- Analyzing the impact of labour heterogeneity on the product schedules
- Examining the effect of other inputs, such as capital, on the product schedules
Conclusion
In conclusion, the product schedules of labour are a crucial tool for understanding the relationship between the quantity of labour and the resulting output. By analyzing the APL, TPL, and MPL schedules, businesses can make informed decisions about the optimal quantity of labour to use and improve their overall efficiency.
References
- Mankiw, N. G. (2017). Principles of Economics. Cengage Learning.
- Samuelson, P. A. (2017). Economics. McGraw-Hill Education.
- Varian, H. R. (2017). Microeconomic Analysis. W.W. Norton & Company.