When the marginal product of labor ________ the average product of labor, then the average product is maximized.
A) equals
B) is greater than
C) is less than
D) The average product of labor is never maximized.

Question

Quizplus · Accepted Answer

When the marginal product of labor equals the average product of labor, the average product is maximized. This is because the marginal product of labor represents the additional output from one more unit of labor, and when it equals the average, it indicates that adding more labor will not increase the average productivity, marking its peak.

When the Marginal Product of Labor ________ the Average Product