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Abel, Baker, and Charlie all run competing bakeries, where each makes loaves of bread. a. At Abel’s bakery, the marginal product of labor is 15, and the average product of labor is 12. Would Abel’s average product increase or decrease if he hired another worker? b. At Baker’s bakery, the marginal product of labor is 7, and the average product of labor is 12. Would Baker’s average product increase or decrease if he hired another worker? c. At Charlie’s bakery, the marginal product of labor is –12. Does this mean her average product must also be negative?
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Abel, Baker, and Charlie all run competing bakeries, where each makes loaves of bread. a. At Abel’s...
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