Gertrude Stork's Chocolate Shoppe normally employs 4 workers.When the Chocolate Shoppe hired a 5th worker, the Shoppe's total output decreased.Therefore,

Question

Quizplus · Accepted Answer

The fact that the total output decreased after hiring the 5th worker implies that the marginal product of the 5th worker is negative. Marginal product refers to the additional output that an additional worker brings, and when it is negative, it means that the addition of another worker leads to a decrease in the output. This could be due to various reasons such as lack of coordination or sharing of resources among the workers.

Gertrude Stork's Chocolate Shoppe Normally Employs 4 Workers