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Consider a Basket- Producing Firm with Fixed Capital

Question 99

Multiple Choice

Consider a basket- producing firm with fixed capital.If the firm can produce 24 baskets per day with 3 workers and then increases production to 36 baskets per day with 4 workers,then which of the following statements is definitely true?


A) Average product for this firm is rising.
B) The firm has passed the point of diminishing marginal productivity.
C) The marginal product of the fourth worker is 9.
D) With 4 workers,the average product is greater than the marginal product.
E) Marginal product for this firm is rising.

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