If another worker adds 9 units of output to a group of workers who had an average product of 7 units, then the average product of labor
A)will remain the same.
B)will increase.
C)will decrease.
D)and what will happen to it cannot be determined.

Question

Quizplus · Accepted Answer

If another worker adds 9 units of output to a group of workers who had an average product of 7 units, then the total output of the group will be (N+1)*AP where N is the number of workers and AP is the average product before adding the new worker.

So, the new total output will be (N+1)*7 + 9 = N*7 + 16.

This means that the new average product will be (N*7 + 16)/(N+1), which is greater than the previous average product of 7. Therefore, the answer is B – the average product will increase.

If Another Worker Adds 9 Units of Output to a Group