Say you are the owner of a Pizza place. You know that when you produce 10 pizzas, the average product of each of your workers is 10, and the marginal product of your last worker is 15. From this information you know that
A)the marginal product is increasing.
B)the average product is increasing.
C)the average product is decreasing.
D)the marginal product is decreasing.

Question

Quizplus · Accepted Answer

Since the marginal product of the last worker (15) is higher than the average product (10) before that worker was hired, it means the average product is increasing. This is because the addition of the last worker has resulted in a higher output per worker on average.

Say You Are the Owner of a Pizza Place