Evaluating a Hiring Strategy
A factory manager claims, 'As long as each new worker we hire adds some positive amount to our total output, our average output per worker cannot decrease.' Critically evaluate this statement. Explain the specific condition under which hiring an additional, productive worker would still cause the average output per worker to fall. Use the relationship between the output of the new worker and the existing average output in your explanation.
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Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
Evaluation in Bloom's Taxonomy
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A company that assembles bicycles currently employs 5 workers, and their combined output results in an average of 10 bicycles assembled per worker each day. The company hires a 6th worker, whose individual contribution is 7 assembled bicycles for the day. What is the direct consequence of adding this 6th worker?
For a production process, if the output from each additional worker is less than the output from the worker hired just before them, then the average output per worker must be decreasing.
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Evaluating a Hiring Strategy
A manufacturing firm observes that the output produced by the most recently hired employee is lower than the average output per employee calculated before this new hire. Based only on this information, what is the immediate effect on the firm's average product of labor?
Match each scenario describing the relationship between the marginal product (the output from one additional unit of input) and the average product (the average output per unit of input) with its resulting effect on the average product.
A firm is hiring workers one by one. Initially, each new worker adds more to total output than the average of the workers already there. After hiring several workers, the firm notices that while new workers are still increasing total output, each one is now adding less to the total than the current average output per worker. What is the immediate consequence of being in this second phase?
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In a production process, if the output generated by an additional unit of input is consistently less than the current average output per unit of input, the average product will begin to _________.