An avocado orchard employs five full-time workers.Currently, the average product of labour is 60 kilograms of avocados per day.The orchard hires a 6th full-time worker and his marginal product is 75 kilograms of avocados.The average product of the six workers will now be
A)more than 60 kilograms.
B)less than 60 kilograms.
C)equal to 60 kilograms.
D)less than the marginal product of labour.

Question

Quizplus · Accepted Answer

Adding a 6th worker with a marginal product of 75 kilograms will increase the total output of the orchard. Since the current average product of labour is 60 kilograms, adding a worker with a higher marginal product will increase the overall average product. Therefore, the average product of the six workers will be more than 60 kilograms.

An Avocado Orchard Employs Five Full-Time Workers