Decent Donuts

-Based on the data in the table above, when Decent Donuts hires eight workers, the
A) average product of labor is greater than the marginal product.
B) marginal product of labor is greater than the average product.
C) marginal product of labor is equal to the average product.
D) marginal product of labor is not defined.

Question

Decent Donuts
 
-Based on the data in the table above, when Decent Donuts hires eight workers, the
A) average product of labor is greater than the marginal product. 
B) marginal product of labor is greater than the average product. 
C) marginal product of labor is equal to the average product. 
D) marginal product of labor is not defined.

Quizplus · Accepted Answer

The average product of labor is calculated by dividing total output by the number of workers, while the marginal product of labor is the additional output from hiring one more worker. When the average product is greater than the marginal product, it indicates that adding another worker decreases the average output per worker.

Decent Donuts -Based on the Data in the Table Above, When Decent