Let's break down the statements based on the information provided:
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If the average product of 11 workers is 14,000 pounds of jelly beans, then this would be an indication of specialization and increased productivity.
- Average Product (AP) = Total Output / Number of Workers. For 10 workers producing 100,000 pounds, the AP is 10,000 pounds per worker (100,000 pounds / 10 workers). If the 11th worker contributes to an average of 14,000 pounds, it suggests that the total output with 11 workers would be 11 workers * 14,000 pounds = 154,000 pounds. This indicates an increase in productivity per worker, possibly due to specialization.
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There are currently diminishing marginal returns.
- Diminishing marginal returns occur when adding an additional input (like labor) results in smaller increases in output. Since the AP has increased from 10,000 pounds (for 10 workers) to 14,000 pounds (with 11 workers), this does not support the idea of diminishing returns at this stage; it suggests an increase in productivity.
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An 11th worker should definitely not be hired to maximize profit.
- Maximizing profit usually involves comparing the marginal cost of hiring an additional worker against the marginal revenue generated by that worker. Without knowing the marginal cost and marginal revenue, we cannot definitively say that hiring the 11th worker is not beneficial.
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The average product is 100,000 pounds of jelly beans each year.
- This statement is incorrect. The average product per worker when employing 10 workers is 10,000 pounds of jelly beans (100,000 pounds / 10 workers).
Of all the statements, the first statement is the most accurate based on the information given. Thus, "If the average product of 11 workers is 14,000 pounds of jelly beans, then this would be an indication of specialization and increased productivity." is true.