Use the following two statements to answer this question: I. If the marginal product of labor is zero, the total product of labor is at its maximum.
II If the marginal product of labor is at its maximum, the average product of labor is falling.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Quizplus · Accepted Answer

When the marginal product of labor is zero, adding more labor does not increase output, indicating that total product is at its maximum. However, when the marginal product is at its maximum, the average product is not necessarily falling; it could still be rising or at its peak.

Use the Following Two Statements to Answer This Question: I