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

Question

Quizplus · Accepted Answer

When the marginal product of labor is less than the average product of labor, increasing the quantity of labor will decrease the average product of labor because the additional workers contribute less to output than the average, pulling the average down.

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