Red Stone Creamery Currently Hires 5 Workers

question 325

Multiple Choice

Red Stone Creamery currently hires 5 workers.When it added a 6th worker, its output actually fell.Which of the following statements is true?

• A)The marginal product of the sixth worker must be negative.
• B)The average product of the sixth worker is negative.
• C)The sixth worker is not as skilled as the fifth worker.
• D)The total product becomes negative.

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Definitions:

Specific Environment

The part of the environment that is directly relevant to an organization, including customers, suppliers, competitors, and government regulations.

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The framework of laws and political climate within which individuals, organizations, and businesses operate.

General Environment

The broad external conditions that affect organizations and their operations, including economic, legal, political, social, and technological factors.