If a firm's marginal product of labour is less than its average product of labour, then an increase in the quantity of labour it employs definitely will
A) decrease its total product.
B) decrease its average product of labour.
C) not change its average product of labour.
D) increase its marginal product of labour.

Question

Quizplus · Accepted Answer

When the marginal product of labor is less than the average product of labor, adding more labor will decrease the average product of labor because the contribution of the additional labor is less than the average contribution of the existing labor.

If a Firm's Marginal Product of Labour Is Less Than