GM cuts jobs at its Australian manufacturing unitGM will cut 500 jobs, or about 12% of its workforce, at itsAustralian plant because of a sharp fall in demand for itslocally-made "Cruze" small car.Source: The Wall Street Journal, April 8, 2013As GM cuts its workforce, how will the marginal product andaverage product of a worker change in the short run?Suppose that before the cuts the marginal product of GMworkers is below their average product.As the number of workers decreases, the marginal product ofa GM workerand the average product of a GM workerin the short run.increases; decreasesdoes not change; does not changedecreases; decreasesincreases; increasesdecreases; increases

As General Motors (GM) cuts 500 jobs at its Australian manufacturing unit due to a sharp fall in…

Answered: As the number of workers decreases, the…

As the number of workers decreases, the marginal product of a GM worker and the average product of a GM worker in the short run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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