LABOR AND OUTPUT

DATA

Labor Hired Total Output Produced

Accordingly, which of the following statements would be true from this data?

a$.$ The company would never hire more than three workers, since diminishing returns

begin with the hiring of the fourth worker.

b$.$ Both the marginal product of labor and the average product of labor hit their

maximums with the hiring of three workers.

c$.$ Average product of labor becomes negative for the seventh worker.

d$.$ both a$)$ and b$)$ are correct

e$.$ all of the above are correct