Table 8-1 Table 8-1 Shows the Technology of Production at the Matsuko's

question 51

Multiple Choice

Table 8-1
$\begin{array}{|c|c|}\hline \begin{array}{c}\text { Number of } \\\text { Workers }\end{array} & \begin{array}{c}\text { Mushrooms per } \\\text { Day (pounds) }\end{array} \\\hline 1 & 12 \\\hline 2 & 30 \\\hline 3 & 45 \\\hline 4 & 50 \\\hline 5 & 54 \\\hline 6 & 56 \\\hline\end{array}$ Table 8-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May.
-Refer to Table 8-1.What is the average product of labor when the farm hires 5 workers?

• A) 4 pounds
• B) 10.8 pounds
• C) 38.2 pounds
• D) 54 pounds

---

Definitions:

Income Effect

The impact of income changes on an individual or economic level on the demand for various products or services.

Substitution Effect

The adjustment in how consumers spend due to differences in the prices between goods, leading to the substitution of one product for another.

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods, which have a positive correlation with income.

Normal Good

A type of good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.