Jefferson's Cleaners

-Using the above table, when Jefferson's Cleaners hires three workers,
A) the marginal product of labour is greater than the average product.
B) it has already experienced diminishing marginal returns.
C) the average product of labour is greater than the marginal product.
D) Both answers A and C are correct.

Question

Jefferson's Cleaners
 
-Using the above table, when Jefferson's Cleaners hires three workers,
A) the marginal product of labour is greater than the average product. 
B) it has already experienced diminishing marginal returns. 
C) the average product of labour is greater than the marginal product. 
D) Both answers A and C are correct.

Quizplus · Accepted Answer

The marginal product of labour is greater than the average product when the average product is increasing. In this case, the average product is increasing from 10 to 12 when the number of workers increases from 2 to 3, so the marginal product must be greater than the average product.

Jefferson's Cleaners -Using the Above Table, When Jefferson's Cleaners Hires Three Workers