If the owner of an ice-cream stand told a student looking for summer work that he would not hire him even if he worked for nothing, we can infer that
A)The marginal product of the labor is zero or less
B)The average product of labor is rising
C)The marginal product of labor is rising
D)The owner is producing at the lowest cost

Question

Quizplus · Accepted Answer

If the owner stated that they would not hire the student even if they worked for free, it implies that the additional output produced by an additional worker (marginal product) is zero or negative. Therefore, the owner does not see any benefit in hiring an additional worker, even if they do not have to pay them.

If the Owner of an Ice-Cream Stand Told a Student