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Sun 12 Oct, 2014 01:43 pm
I am comparing productivities of two industries.
APK= Average Productivity of Capital
MPK= Marginal productivity of capital
APL= Average productivity of labour
MPL= marginal productivity of labour. 1 and 2 are the two industries/firms.
I have got the following results
1) APK1 >APK2
2) APL1<APL2
3)APK1>MPK1
4)APL1>MPL1
5)APK2<MPK2
6)APL2>MPL2
7) MPK1>MPK2
8) MPL1>MPL2
What is the interpretation of the above results? Which industry/business is more productive and be promoted? Urgent! Thank you.