If the average product of labor equals the marginal product of labor,then
A)the average product of labor is at a maximum.
B)the marginal product of labor is at a maximum.
C)Both A and B above.
D)Neither A nor B above.

Question

Quizplus · Accepted Answer

When the average product of labor equals the marginal product of labor, the average product of labor is at its highest point. This is because the average product of labor is the output produced per unit of labor, while the marginal product of labor is the additional output produced by adding one more unit of labor. As long as the marginal product of labor is greater than the average product of labor, the average product of labor will continue to rise. Therefore, when the two are equal, the average product of labor is at a maximum.

If the Average Product of Labor Equals the Marginal Product