Consider comparing the relationship between marginal and average product. When average product is increasing in labor, marginal product is greater than average product. That is, if $\mathrm { AP } _ { \mathrm { L } }$ increases in $\mathrm { L }$, then $\mathrm { MP } _ { \mathrm { L } } \mathrm { AP } _ { \mathrm { L } }$.

Question

Consider comparing the relationship between marginal and average product. When average product is increasing in labor, marginal product is greater than average product. That is, if $\mathrm { AP } _ { \mathrm { L } }$ increases in $\mathrm { L }$, then $\mathrm { MP } _ { \mathrm { L } } > \mathrm { AP } _ { \mathrm { L } }$.

Quizplus · Accepted Answer

This statement is true according to the relationship between marginal and average product in production theory. When average product is increasing, marginal product is greater than average product.

Consider Comparing the Relationship Between Marginal and Average Product APL\mathrm { AP } _ { \mathrm { L } }APL​

Consider Comparing the Relationship Between Marginal and Average Product $\mathrm { AP } _ { \mathrm { L } }$