Below you will find six statements that describe marginal product, average produ

Question

Below you will find six statements that describe marginal product, average product, or diminishing returns. Place each statement in the correct bin. Marginal product Average product Diminishing Returns When 8 weavers are employed and output is equal to 10 baskets. An additional worker adds less to total output than the previous worker hired. This is the change in total output divided by the change in the number of workers. If hiring causes average product to increase, kristen's has to be above current average product. This is total output divided by the number of workers. Joe notices that when worker, the amount of cars his company can wash increases.

Explanation / Answer

A) WHEN 8 WEAVERS ARE EMPLOYED AND OUTPUT IS 80 BASKETS,__________ IS EQUAL TO 10 BASKETS

ANS. AVERAGE PRODUCT

B)AN ADDITIONAL WORKER ADDS LESS TO OUTPUT THAN THE PREVIOUS WORKER HIRED

ANS. DIMINSHING RETURNS

C) THIS IS THE CHANGE IN TOTAL OUTPUT DIVIDED BY THE CHNAGE IN THE NO. OF WORKERS

ANS. MARGINAL PRODUCT

D) IF HIRING KRISTEN CAUSES AVERAGE PRODUCT TO INCREASE, KRISTEN'S __________ HAS TO BE ABOVE CURRENT AVERAGE PRODUCT

ANS. MARGINAL PRODUCT

E) THIS IS TOTAL OUTPUT DIVIDED BY THE NO. OF WORKERS

ANS. AVERAGE PRODUCT

F) JOE NOTICES THAT WHEN HE HIRES ANOTHER WORKER , THE AMOUNT OF CARS HIS COMPANY CAN WASH INCREASES

ANS. MARGINAL PRODUCT

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