FIGURE 7-1
-Refer to Figure 7-1.If the firm hires the 15th unit of labour,
A)the extra output will be zero.
B)average product will rise.
C)marginal product will be unchanged.
D)the firm will reach its capacity.
E)output will increase by 2 units of output.

Question

FIGURE 7-1
-Refer to Figure 7-1.If the firm hires the 15th unit of labour,
A)the extra output will be zero. 
B)average product will rise. 
C)marginal product will be unchanged. 
D)the firm will reach its capacity. 
E)output will increase by 2 units of output.

Quizplus · Accepted Answer

The marginal product of the 15th unit of labor is zero, so the extra output will be zero.

FIGURE 7-1 -Refer to Figure 7-1.If the Firm Hires the 15th Unit