-Based on the above figure, for which of the following amounts of output at Ike's Ice Cream Kitchen does the average product of labor exceed the marginal product of labor?
A) at 10 gallons
B) at 40 gallons
C) at 70 gallons
D) all of the above

Question

-Based on the above figure, for which of the following amounts of output at Ike's Ice Cream Kitchen does the average product of labor exceed the marginal product of labor?
A) at 10 gallons 
B) at 40 gallons 
C) at 70 gallons 
D) all of the above

Quizplus · Accepted Answer

The average product of labor exceeds the marginal product of labor when the marginal product is decreasing. This typically occurs after reaching the maximum point of the marginal product curve, which is likely at 70 gallons.

-Based on the Above Figure, for Which of the Following