Suppose that the average product of labour is 100 and the marginal product of labour is 50 when 5 workers are employed. It therefore must be true that the average product of labour will be greater than 100 when one more worker is hired.

Question

Quizplus · Accepted Answer

We cannot determine whether the average product of labour will be greater than 100 when one more worker is hired based solely on the given information. The average product of labour will increase if the marginal product of labour is greater than 100 when one more worker is hired. However, we do not know the marginal product of labour for the sixth worker, so we cannot determine the answer with certainty.

Suppose That the Average Product of Labour Is 100 and the Marginal