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 MPL is -12. Does this mean her average product must also be negative?
d. Based on your answers to (a), (b), and (c), can you generalize the nature of the relationship between the average and marginal products of labor?