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

Question

Consider comparing the relationship between marginal and average product. When average product is decreasing in labor, marginal product is less than average product. That is, if $\mathrm { AP } _ { \mathrm { L } }$ decreases 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. When average product decreases, it means that the additional units of labor are contributing less to the total output than the units before. Therefore, the marginal product of the additional unit of labor will be less than the average product. This statement is true. Marginal product measures the incremental increase in output from adding one more unit of labor, while average product measures the average output per unit of labor. So, if the average product is decreasing, it means that each additional unit of labor is less productive on average than the previous units, and therefore the marginal product must be less than the 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 $\mathrm { AP } _ { \mathrm { L } }$