Suppose that the amount of capital and plant size are fixed for a firm. With 10 workers, it can produce 180 units of output and with 11 workers, the output produced is 190 units. Which of the following statements is true?
A) The average product of labour when 10 workers are hired is 10 units.
B) When the 11th worker is hired, average product of labour is greater than marginal product.
C) The additional unit of labour hired by the firm exhibits increasing returns.
D) The marginal product of the 11th worker is 18 units.
Correct Answer:
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