Mathematical Proof of the Relationship Between Marginal and Average Product

Analyzing Production Efficiency

A factory manager observes that after hiring a 10th worker, the average output per worker declined. The manager concludes that this 10th worker must have produced less output than the 9th worker did. Is the manager's conclusion necessarily correct?

A firm observes that for its current level of employment, the average product of labor is decreasing as it hires more workers. Based on this information, what must be true about the marginal product of the last worker hired?

Production Decision at a Coffee Shop

Evaluating a Productivity Policy

A company is tracking its production efficiency. Match each observation about the output of the most recently hired employee to its necessary consequence for the company's average output per employee.

A firm is analyzing its production output. It discovers that for the current number of employees, the average output per employee has reached its highest possible value. What must be true about the relationship between the output produced by the very last employee hired and the average output per employee at this specific point?

Evaluating a Manager's Production Strategy

Bakery Production Analysis

A company employs 10 workers and produces a total of 500 units of output per day. When the company hires an 11th worker, the total daily output increases to 528 units. Based on this information, what is the effect of hiring the 11th worker on the average output per worker?