To assess the statements about John's Jelly Bean Jungle, let's break down each statement.
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The average product is 10,000 pounds of jelly beans per worker.
The average product (AP) is calculated as the total output divided by the number of workers. With 100,000 pounds produced by 10 workers, the average product is: \[ \text{AP} = \frac{\text{Total Output}}{\text{Number of Workers}} = \frac{100,000 \text{ pounds}}{10 \text{ workers}} = 10,000 \text{ pounds/worker} \] This statement is true. -
An 11th worker should definitely not be hired to maximize profit.
Without further information about the marginal product of hiring an additional worker or the cost of hiring that worker relative to the profits generated from the additional production, we cannot definitively say whether an 11th worker should or should not be hired. This statement is not necessarily true. -
The average product is 100,000 pounds of jelly beans each year.
This statement is incorrect. As calculated earlier, the average product is 10,000 pounds of jelly beans per worker, not 100,000 pounds. -
There are currently diminishing marginal returns.
Diminishing marginal returns occur when adding more of a variable input (in this case, labor) results in smaller increases in output. Since we have no information about the production function and how output changes as more workers are added, we cannot determine if diminishing marginal returns are currently present based solely on the provided data. This statement is not necessarily true.
In conclusion, the only statement that is confirmed as true is:
The average product is 10,000 pounds of jelly beans per worker.