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:

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, usually aimed at ensuring fairness by taxing higher incomes at higher rates.

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Dollar Tax Liability

The amount of tax owed to the government, calculated in dollars, based on income, sales, imports, or other taxable activities.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on those who have higher earnings.