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After Suzie, Owner of Suzie's Sweet Shop, Hires Her 8th

Question 270

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After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines.Which of the following statements must be true?


A) The marginal product of the 8th worker is negative.
B) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired.
C) Suzie's profits would be greater if she did not hire the 8th worker.
D) The average product of labor is negative.

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