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

Question

Quizplus · Accepted Answer

When the marginal product of labor is greater than the average product of labor, adding more labor increases the total product because each additional unit of labor adds more to the total output than the average, thus increasing the total product.

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