An avocado orchard employs five full-time workers. Currently, the average product of labour 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) less than the marginal product of labour.

Question

Quizplus · Accepted Answer

The addition of a worker with a higher marginal product will increase the overall output of the orchard, causing the average product to increase as well. Therefore, the average product of the six workers will be more than 120 pounds.

An Avocado Orchard Employs Five Full-Time Workers