Question

Brenda's Pastry employs two workers who produce 4 dozen pastries per hour. After Brenda hires a third worker, the number of pastries produced increases to 7 dozen per hour. Because the marginal product of the third worker is _____ than the average product of two workers the average product must _____.

Answer 1

Options: greater;fall less; rise less; fall greater; rise.

Answer:Less;fall

Explanation:Marginal product is the change observed in the production of a certain goods when an additional input in employed. The formular for marginal product is as follows;

MP=∆Y/∆X, where ∆X represents the change in input which can be the increase in labour and ∆Y is the corresponding change observed in the output as a result of the change in input.

Sine the average output is less than that of the two, it will cause the average product of two workers the average product must fall.