JAMB 2018 Economics · Question 46
No 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 N2…
Question
No 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 N2, what is the average revenue when 6 men are employed?
- A.N110
- B.N120
- C.N220
- D.N330
Answer: C. N220
Explanation written with AI and checked against the answer key
Analyze the question: We are asked for the average revenue when 6 men are employed, given total product (TP) and a price of N2 per unit.
Concept:
- Total Revenue (TR) = Price × Quantity (total product)
- Average Revenue (AR) = TR ÷ Quantity = Price
In the textbook sense, average revenue per unit of output is always equal to the price. That would give N2, which is not among the options. So the question must be asking for the average revenue product (ARP), which is the revenue per worker:
ARP = Total Revenue ÷ Number of workers
Solution:
- With 6 men, TP = 660 units
- TR = 660 × N2 = N1,320
- ARP = N1,320 ÷ 6 = N220
Checking the other options:
- N110 is the average product (660 ÷ 6) with no price applied, so it is wrong.
- N120 and N330 don't come from any valid calculation here. N330 would be 660 ÷ 2, which misuses the price.
Answer: N220, which is option C.
Tip: When a question gives a table of men (labour) and total product, and asks for "average revenue" with a price, it is really asking for revenue per worker. Multiply the total product by the price, then divide by the number of workers. Also remember: Average Product = TP ÷ workers, and ARP = AP × Price (110 × 2 = 220).
AI can make mistakes. Report anything that looks wrong.
Past questions © the examination body (JAMB/WAEC/NECO). DeeepSolve is not affiliated with them. Rights holders: see /copyright.
