If the marginal product of labor is below the the average product of labor, then Select one: a

Economics Dec 28, 2020

If the marginal product of labor is below the the average product of labor, then

Select one:

a. The average product of labor must be rising

b. The average product of labor must be falling

c. Marginal product of labor must be rising

d. None of the above is correct

Expert Solution

Answer B

When the marginal product of labour curve is below the average product of labour curve, (that is MPL < APL), the average product of labour must be falling because the marginal product of labor is decreasing with every additional increase of one unit of labor which is in accordance to law of diminishing marginal product. Therefore, option B is correct.

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