Pressed Juicery makes fresh-squeezed juices. The business produces 750 bottles per week with five employees. An additional worker is hired, and total output per week rises to 895 bottles. At six workers, marginal product is _____ the average product; thus, average product is _____.

Question

Quizplus · Accepted Answer

Marginal product is the change in output divided by the change in input. In this case, the change in output is 895 - 750 = 145 bottles, and the change in input is 6 - 5 = 1 worker. So, marginal product is 145/1 = 145 bottles per worker. Average product is total output divided by the number of workers. In this case, average product is 895/6 = 149.17 bottles per worker. Since marginal product is below average product, average product is falling.

Pressed Juicery Makes Fresh-Squeezed Juices