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At Stu’s barber shop, the marginal product of labor is 12, and the average product of...

At Stu’s barber shop, the marginal product of labor is 12, and the average product of labor is 18. At Jo’s barber shop, the marginal product of labor is 14, and the average product of labor is 12. Stu’s average product of labor would _______ if he hired another barber. Jo’s average product of labor would _______ if he hired another barber.

A. increase; increase

B. increase; decrease

C. decrease; increase

D. decrease; decrease

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Answer #1

Ans) the correct option is C. decrease; increase

Stu's average product is greater than marginal product so hiring another labor will decrease average product.

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