After Suzie,owner of Suzie's Sweet Shop,hires her eighth worker,the average product of labour declines.Which of the following statements must be true?

Question

Quizplus · Accepted Answer

When the average product of labour declines after hiring the eighth worker, it means that the output per worker has decreased. Therefore, the marginal product of the eighth worker must be less than the average product of labour before the eighth worker was hired. Option A is not necessarily true because the marginal product of the eighth worker could be positive but lower than the average product of labour before their hiring. Option C is incorrect as profits are dependent on revenue, costs, and product demand and not just the number of workers. Option D is impossible as the average product of labour cannot be negative.

After Suzie,owner of Suzie's Sweet Shop,hires Her Eighth Worker,the Average