Refer to Scenario 7.7. The average product of labor with four workers is

A) 3.
B) 3.5.
C) 4.
D) 14.

Production Possibilities

Different combinations of goods and services that a society can produce given its available resources and technology.

Average Product

The output per unit of input, calculated by dividing total production by the number of input units.

Labor

The human effort (physical or mental) that is used in the production of goods and services.