Jennifer is the only employee of her sole proprietorship. She is enter

Jennifer is the only employee of her sole proprietorship. She is entertaining the idea of hiring an additional employee. She knows that on her own she can produce 100 units per day. Jennifer figures that Applicant A will help her produce 175 units per day whereas Applicant B will help her produce 155 units per day. Which of the following statements is most accurate?

A) Applicant B has a marginal product of 75 units.
B) Applicant B has an average product of 77.5 units.
C) Applicant A has a marginal product of 75 units.
D) Applicant A has an average product of 87.5 units.

ANSWER

C