Which of the following statements is true of the relationship between marginal product and average product of labor?
A)When the marginal product of labor is decreasing,the average product of labor must also be decreasing.
B)When the average product of labor is increasing,the marginal product of labor must also be increasing.
C)When the marginal and average products of labor are equal,the marginal product is at its minimum.
D)When the average product of labor is decreasing,average product must be greater than marginal product.

Question

Quizplus · Accepted Answer

When the average product of labor is decreasing, it means that the addition of one more unit of labor is adding less to the total output than the average output per worker was before. This implies that the marginal product (the output from the additional unit of labor) is less than the average product at that point, leading to a decrease in the average product as more labor is added.

Which of the Following Statements Is True of the Relationship