If the marginal productivity of labor is falling, it follows that
A)the average productivity of labor is rising.
B)marginal cost is falling.
C)marginal cost is rising.
D)average productivity of labor is falling.

Question

Quizplus · Accepted Answer

When the marginal productivity of labor is falling, it typically means that each additional unit of labor is contributing less to output, which often leads to an increase in marginal cost.

If the Marginal Productivity of Labor Is Falling, It Follows