A soft drink factory employs seven workers and produces 500 bottles of soda a day. When the company reduces the workforce to six workers output decreases to 450 bottles a day. The seventh worker: A)had a marginal product of 50 bottles of soda. B)caused average product to fall. C)had a lower marginal product than the sixth worker. D)All of these are correct.

Question

Quizplus · Accepted Answer

The seventh worker had a marginal product of 50 bottles (500 - 450), which is lower than the average product when there were six workers (450/6 = 75), causing the average product to fall. Thus, all statements are correct.

A Soft Drink Factory Employs Seven Workers and Produces 500