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Consider a house construction firm with fixed capital. The firm can build 8 houses per year with 16 workers and 8.8 houses per year with

Consider a house construction firm with fixed capital. The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers. If it is currently building 8.8 houses per year, which of the following is true?

a)The firm has not yet reached the point of diminishing average productivity.

b)Average product is at a maximum when the firm has 17 workers.

c)The marginal product is below the average product.

d)Average product is at a maximum when the firm has 16 workers.

e)There is insuffucient information to answer the question.

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