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Staci's Sign Shoppe Makes Signs for Businesses

question 232

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Staci's Sign Shoppe makes signs for businesses. Staci is currently producing 210 signs per week with three employees. Staci hires an additional worker and total output per week rises to 292 signs. At four workers, marginal product is _____ the average product; thus, average product is _____.


Definitions:

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of that resource demanded by firms.

Shift Factors

Variables or conditions that can cause a shift in demand or supply curves, thus changing market equilibrium.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital, in the production process.

Winner-Take-All Markets

Markets in which a few individuals or companies obtain a large majority of the rewards, often seen in industries like technology and entertainment.

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