Classify whether each of the given statements describes marginal product, average product, diminishing returns.
1. Diminishing returns
2. Marginal product
3. Average product
A. This is total output divided by the number of workers.
B. Joe notices that when he hires another worker, the amount of cars his company can wash increases.
C. An additional worker adds less to total output than the previous worker hired.
D. This is the change in total output divided by the change in the number of workers.
E. When 8 weavers are employed and output is 80 baskets, is equal to 10 baskets.
F. If hiring Kristen causes average product to increase, Kristen's has to be above current averag product

Q&A Education