Question 48
Theory of ProductionUse the table below to answer questions 47 and 48.
Number of men: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8
Total product (unit): 200 | 440 | 540 | 600 | 640 | 660 | 660 | 640
If the price per unit is ₦2, what is the average revenue when 6 men are employed?
- A.₦110
- B.₦120
- C.₦220
- D.₦330
Show the answer and explanation
Answer: C (₦220)
Explanation
Total revenue = 660 × ₦2 = ₦1,320; spread over 6 men this is ₦1,320 ÷ 6 = ₦220 per man.