An avocado orchard employs five full-time workers.Currently, the average product of labor is 120 pounds of avocados per day.The orchard hires a 6th full-time worker and his marginal product is 150 pounds of avocados.The average product of the six workers will now be
A)more than 120 pounds.
B)less than 120 pounds.
C)equal to 120 pounds.
D)greater than the marginal product of labor.

Question

Quizplus · Accepted Answer

The addition of a sixth worker with a marginal product of 150 pounds of avocados means that the total production of the orchard has increased. This will cause the average product per worker to increase as well. Therefore, the average product of the six workers will be more than the previous average of 120 pounds.

An Avocado Orchard Employs Five Full-Time Workers