# Microeconomics Example Problems

Problem: At the Amarillo Piano Company, the average product of labor equals 10, regardless of how much labor is used.

a) What is the marginal product of the first unit of labor?

b) What is the marginal product of the eightieth unit of labor?

c) By how much will output increase if labor is increased by 100 units?

d) By how much will output fall if labor is reduced by 50 units?

e) Does this case seem realistic? Why or why not?

(Please show all your work)

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#### Solution Preview

1) Production 3

At the Amarillo Piano Company, the average product of labor equals 10, regardless of how much labor is used.

APL = 10 = Q/L which gives Q = 10L

a) What is the marginal product of the first unit of labor?

The marginal product for the first ...

#### Solution Summary

This solution provides steps necessary to solve the microeconomics problems.