Refer to the following:
"At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years ago, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal).
-In 1987,
A) total product was 15,000 bicycles per day.
B) the average product of labor was 0.11.
C) the marginal product of labor was 8.8.
D) both a and b
E) both a and c

Question

Quizplus · Accepted Answer

Total product being 15,000 bicycles per day means that the production function is at work, and therefore, both average product of labor (0.11) and marginal product of labor (8.8) can be calculated. Therefore, both option A and option C are correct.

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