If the owner of an ice-cream stand told a student looking for summer work that he would not hire him even if he worked for nothing, we can infer that
A)the marginal product of the labor is zero or less.
B)the average product of labor is rising.
C)the marginal product of labor is rising.
D)the owner is producing at the lowest cost.

Question

Quizplus · Accepted Answer

The owner's statement suggests that even if the student worked for free, his labor would not be productive enough to bring in any additional revenue, leading to a marginal product of labor that is zero or less.

If the Owner of an Ice-Cream Stand Told a Student