-The above table shows the short- run total product schedule for the campus bookshop. When the fifth employee is hired, the marginal product is _______ and is _______ the average product.
A) increasing; greater than
B) decreasing; less than
C) decreasing; greater than
D) increasing; less than

Question

-The above table shows the short- run total product schedule for the campus bookshop. When the fifth employee is hired, the marginal product is _______ and is _______ the average product.
A) increasing; greater than 
B) decreasing; less than 
C) decreasing; greater than 
D) increasing; less than

Quizplus · Accepted Answer

The marginal product is decreasing because the increase in total product from the fourth to the fifth employee is less than the increase from the third to the fourth. It is greater than the average product because the marginal product is still adding more to the total product than the average contribution of all employees.

-The Above Table Shows the Short- Run Total Product Schedule